If you’ve heard about cryptocurrencies this year, you probably haven’t heard about Solana being in the top ten cryptocurrencies, but over the past couple of weeks, this coin has made headlines. So, is Solana now the hottest bitcoin in the crypto race?
How Did Solana Become A Top 10 Crypto Overnight?
Solana is a cryptocurrency initially released into the crypto market in April of 2019.
As of the last week of October 2021, Solana has shown an increase of over 72% within the week. It currently stands at no.2 on the list of top 100 gainers of the week.
So how did this happen, you ask? Solana released an update called wormhole 2.0. In the simplest sense, a wormhole is a fast and efficient method of communication and transactions for cryptocurrency trading options.
Solana’s wormhole 2.0 is not only low in cost but also provides high speed. This has also been used for transactions of top coins such as Terra, Ethereum and others.
The highlighting factor is, users experienced no network congestion while using this operator. This increase in the user base of a feature released by the company indirectly contributed to its popularity and growth.
This led to the 72% increase in the value of its price — a record high for the company.
Will Solana Take Over The Crypto Market?
Solana has currently been nicknamed the Ethereum killer. This could be far from reality or it may be true in the future; allow us to explain.
As with all blockchains on the market, it is impossible to judge the absolute growth of any cryptocurrency.
Solana is a new entry into the crypto market and is doing incredibly well. It has multiple advantages over its contemporary, such as;
1. High transaction rate: Solana boasts over 50000 transactions per second.
2. High settlement speed: 0.4-second settlements.
3. Low cost: $0.00025 per transaction.
Having said this, no blockchain has experienced only growth with no downfall.
Its status as an Ethereum-killer may disappear if its operator doesn’t function as well, or if its contemporary performs better.
It’s also important to note that some consider Solana a complement to Ethereum rather than a contemporary.
How much truth this statement holds, only time will tell.
There will be expected highs and lows to Solana as crypto, but it’s definitely on the ideal trajectory to become a high yielding coin.
Will Solana’s Price Go Up?
Currently, the cryptocurrency bubble has lost some air and the environment in the crypto world is a little tense.
The price of Solana as of the 27th of October dropped by 9.7%. Since it’s an unpredictable time, no one can say for sure what the next turn may yield.
Investing for short term gains though, may be risky with Solana at this point.
So hold onto your coins if you have invested already and follow the market keenly.
As is the case with any cryptocurrency, we can expect a definite increase in the value of the coin over a longer period.