Solana Price Up By 8.75% – Good Time To Buy SOL?

Solana aims to provide decentralized finance (DeFi) solutions by facilitating decentralized applications (dapps) on its platform. Its recent number of integrations with top dapps has seen several investors scramble to buy SOL.

If you are still unsure whether to add Solana to your crypto portfolio, this article will highlight some of the reasons why you should buy SOL for future returns.

Solana Blockchain Sees Wide Adoption

One of the first things you should look out for in making a crypto investment is how widely used it is. By this, I mean adoption. Even though the Solana blockchain does not boast of the market cap of popular dapps platform Ethereum, several businesses and protocols have added support for its SOL token.

One teeming number of growing adoption is the popular Swiss-based digital asset management firm 21 Shares AG. On June 28, the issuer of crypto Exchange-Traded Products (ETPs) announced that it would be launching the industry’s first SOL ETP on June 30 on the Swiss SIX stock exchange. It will be traded as ASOL.

A day later, Digital Assets AG firm announced that it had launched its tokenized stocks on the Solana blockchain. This will enable investors’ trade popular US stocks like Facebook, Apple, Microsoft, Tesla, and several others 24/7. This way, they never have to wait for the market to open before assuming a position.

Superior Block Finality Resolution

In the rapidly expanding DeFi subsector, one of the key ingredients for success is quick transactions resolution. In this aspect, Solana is a clear winner.

The Ethereum network initially launched smart contracts, and this opened a whole new ecosystem for the blockchain technology originally introduced by the Bitcoin network. However, Ethereum made a wrong choice in settling for a proof-of-work (PoW) consensus algorithm that the Bitcoin blockchain uses.

Although security is top-notch as both blockchains cannot suffer 51% attack (where a single entity controls more than 50% of the blockchain network). Ethereum’s protocol lacks scalability and interoperability.

Its PoW protocol demanded that miners compete to solve mathematical puzzles for block rewards and saw its gas fees skyrocket and network congestion.

Solana, on the other hand, is in a different space entirely. From the onset, it used a proof-of-stake (PoS) protocol, which is believed to be faster and less energy-intensive.

It also incorporated an innovative timing mechanism called proof-of-history (PoH). According to founder Anatoly Yavenko, PoH was birthed from Bitcoin’s SHA256 hashrate, and he realized that transactions on the blockchain could be time-stamped in real-time, making sure that all transactions are validated on time.

This combination enables Solana to validate up to 65,000 TPS and is still expected to increase to 700,000 in the future.

This higher TPS makes Solana faster than conventional payment giants Visa and MasterCard. In addition, users pay a fraction of the cost they have to cough out if they use the Ethereum network for as low as $0.01 for each transaction.

This has seen many Ethereum-based protocols migrate to the Solana blockchain, with PowerLedger and Neon Labs being the latest example.

Solana’s Expanding Ecosystem

Solana is not here for the short term. According to its CEO, Solana is out to revolutionize how everyone will interact with the blockchain space. Solana wants to make it possible for anyone to use DeFi without needing any technical qualifications to do so.

To this end, the blockchain platform integrated with a third-generation crypto exchange to launch a decentralized exchange (DEX) platform called Soldex.

According to a press release, the new DEX platform will comprise a first-of-its-kind combination of blockchain and artificial intelligence (AI) technologies to create automated and decentralized products.

Soldex is meant to power the new generation of flexible financial markets as it will serve as the foundational layer for settlement, custody, market making, and liquidity.

Added to this, the Solana blockchain has over 200 dApps currently building on its platform, with the likes of Nova Finance, Symmetry, Solaris, and several others calling it home.

SOL: Breaking Above The Bearish Wave

The crypto market is generally tied to the price movement of the world’s oldest cryptocurrency, Bitcoin. An uptrend for BTC price action would normally see the bulls taking center stage and vice-versa.

This enforced affiliation has seen several small-cap cryptocurrencies like SOL see their value fall when Bitcoin enters a bearish trend.

At press time, the SOL token is trading at $30.538 and is up 8.75% on the daily chart. This rally has seen several investors want to buy SOL.

Meanwhile, SOL has seen better days than today. Coming into 2021 at $1.851, SOL spiked to an all-time high (ATH) of $55.91 on May 18.

However, it could not retain this price action due to the onset of a two-month market crash in May. It has since dipped to $23.49, and today’s rally shows an increase of 5%.

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SOL Technical And Fundamental Analysis

The SOL token is looking promising on the trading chart. With a price peg of $30.583, it is in the bullish territory as it trades above the 20-day moving average (MA) price of $28.269. Its relative strength index (RSI) stands at 52.50.

This shows that it is trading below the overbought level and a great opportunity to buy SOL.

So far, the Solana blockchain is taking strategic steps to expand its customer base. Per a report, the dapps platform is launching a hackathon in India. The three-week event is meant to boost blockchain involvement and subsequently incentivize developers in the country to build on the Solana network.

Namaste India! 🇮🇳

We’re incredibly excited to announce #BuildingOutLoud — a hackathon exclusively for Indian developers and entrepreneurs. pic.twitter.com/P66685xaSn

— Solana India (@solana_india) July 27, 2021

Another is that Coinbase-sponsored blockchain company Bison Trails has launched its Query & Transact node infrastructure on the Solana network.

According to the development team, the tool is geared to help developers access and verify transaction data, write transactions, and build apps and services to expand the Solana blockchain.