Buy This Exciting Altcoin in 2022
2021 has been another crazy year for the cryptocurrency markets. Touching a $3 trillion valuation for the first time, the shift towards Web 3.0 and Bitcoin being adopted as a legal tender in El Salvador are just a minuscule few wins for the digital space in these last 12 months. But, in 2021 more than any other year we have seen since cryptocurrencies first came into the scene, the altcoins have proved to be the real winners.
Now, as 2021 has finally come to an end, let’s take a look at one high performing token that has the potential to give investors astronomical returns in the coming years. A token that has outperformed the likes of Bitcoin, Cardano and Ethereum in 2021, can Solana’s SOL token be the safest investment strategy for the long term? Let’s take a look.
If you had invested $1 worth of Solana’s token (SOL) at the start of 2021, you would have enjoyed a monumental return of 236x when the coin reached its all-time high just 6 months later. SOL has soared by a crazy 19,000% in under 12 months, which is enough to satisfy investors for an entire lifetime.
The token is pretty new to the crypto space, only founded as late as 2017. Providing investors with an open-sourced platform that is designed to host various decentralized and scaling applications as we see on Ethereum. After a historic rally in the summer months of June and July, Solana has corrected to $186 as of December 29 according to Coinmarketcap. But a pullback is normally a good time to invest in the token once again since it is quick to consolidate before its next breakout.
Why did Solana soar?
One of the biggest reasons Solana became popular was when it was termed as the ‘Ethereum killer’. Solana’s market cap is over $50 billion, making it the 5th largest cryptocurrency in the world. This is still a long way behind Ethereum’s almost half a trillion-dollar value.
But, the main reason why Solana has out-performed Ethereum throughout 2021 is due to the network services that the investors can benefit from. Solana in comparison to Ethereum provides a much faster transaction speed and a low cost. While Ethereum’s blockchain can make about 15–20 transactions a second, Solana can handle close to 75,000 a second. Solana uses smart contracts to attract developers who can create new projects and DApps on the blockchain.
Since Solana uses a Proof-of-Stake(PoS) consensus over Ethereum’s choice of Proof-of-Work, it makes the network much faster and easier to scale.
Should you buy Solana ahead of 2022?
Solana’s impact on NFTs makes them a must-watch token in the coming years. NFTs have been one of the biggest growing spaces in 2021, and Solana has made $500 million off of NFT transactions in just under a year. In September alone, Solana made a record $189.4 million worth of NFT sales. While Ethereum is still the central hub for NFT marketplaces, Solana is a cheaper alternative that is growing extremely fast.
Solana’s market share is also increasing with the launch of Solanaart, which is the blockchains own NFT marketplace. One of the biggest advantages is that investors have to pay a much lower fee compared to Ethereum’s.
Finally, Solana is still a coin that has a lot more growth to be seen. It is more than 30% down from it’s all-time high and is a favourite among investors. This is the year where the token has started to become mainstream, and the future of SOL looks very bright. Within the next year.
Furthermore, reputable analysts such as the Wallet Investor are extremely bullish on SOL. The company’s 1-year forecast predicts a potential price of $548 by the end of 2022. This is a potential upside of more than 350%, which is surely not out of the question for a coin as fundamentally sound as SOL.
With Solana potentially bringing hundreds more DApps and projects to their faster and easy-to-use blockchain, this Layer-1 altcoin is going to be an interesting token to follow for 2022.