Over the weekend we had saw a draw down in crypto while Dogecoin was an outlier. Now after Doge day is over Dogecoin has retreated over 30% from its high. Yet there is one coin that have slip under most radar in the top 20 in market cap that has continue to rise since BTC drop and now Dogecoin drop.
Solana has been referenced as an Ethereum killer. As Solana can perform 1,000 transactions a second while Ethereum currently at max speed can only do 15 transactions a second. Solana's founder is non other than self made crypto billionaire Sam Bankman-Fried. The crypto has now worth over $8 billion in marketcap and has jump 17x since start of the year. It does not seem to stop as Solana has many major players of crypto backing it up.
Alameda, a trading firm led by Bankman-Fried, has been heavily investing in the Solana ecosystem in a bid to promote an Ethereum alternative capable of faster transactions and higher scalability. The Ethereum blockchain has become increasingly congested, leading to an increase in transactional tariffs known as “gas fees.”
There are also establish entities related to Defi that are incorporating Solana into their ecosystem making Solana extend its reach beyond its own ecosystem. The main reason for adopting Solana is the low gas fees yet equal if not better gateways Solana has to offer in terms of Defi and smart contracts.
“It is a combination of people being fed up with gas fees and comparisons on decentralization with other major non-Ethereum blockchains,” Bankman-Fried said.
Solana's low gas fees can be attributed to its use of proof of stake. Incentivizing those who hold and stake Solana and the earlier they do so the more rewards they earn.
Solana is proof-of-stake blockchain, Solana grants reward incentives for SOL token holders who are staking their tokens to help secure the network, according to Chris Bo, China lead for Solana blockchain. Another incentive for Solana validators is an inflation-related mechanism that went live in February. With an initial annualized inflation rate of 8%, newly minted tokens go to validators and stakers in proportion to their staked amounts.
https://medium.com/solana-labs
Solana has a dedicated medium blog for those interested to learn more about the token and its ecosystem. What has peaked my interest is the fact that over the weekend although many altcoins including BTC drop significantly, Solana manage to be in the green all week and has sustained its gains for the most part up to now. All this on the back drop of new really new upgrades, updates, or set target dates of new releases.
The old saying goes there is always a bull somewhere in a bear market, just have to find where it is at. Solana maybe it. The project started in 2017 and now into its fourth year is gaining value and likely more attention. Keep a close eye on this unique opportunity to see if it can be the next Ethereum. Not Ethereum is now currently over $2,100 / each. For Solana to reach that type of evaluation it will need to move 15x higher. That is some insane projections for Solana.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
