Solana has taken the shine from the anticipated Bitcoin halving event this month as retail investors clinch on the trendy blockchain.
On the Solana network, numerous projects are presently under development, and more are anticipated to appear soon. The price of SOL, the native currency of the network, is further fueled by these projects.
In March 2020, Solana’s mainnet went live, utilizing a proof-of-stake system in conjunction with a special proof-of-history (PoH) technology. With this combination, Solana can theoretically process transactions at a peak rate of 710,000 transactions per second, making it one of the fastest blockchains currently in use.
Solana SOL is anticipated to see further growth considering the impending Bitcoin Halving, which is set for late April. Indeed, analysts predict greater growth for the altcoin despite the recent easing of prices in the cryptocurrency market.
There have been growing concerns about its centralization of processing transactions and storage although it is decentralized, with about 2,000 validators.
The DeFi sector on Solana features a thriving ecosystem of decentralized exchanges (DEXes), including DEX aggregator Jupiter and Raydium, that take advantage of Solana’s low latency and high throughput to provide a smooth trading experience. Solana has supplanted Ethereum as the No.1 blockchain in terms of trading volume on the DEX
These platforms are more user-friendly and efficient than Ethereum equivalents, allowing a greater variety of DeFi activities, such as token swaps and liquidity.
Solana’s recent fundamental trajectory remains favourable. In terms of gains, it even performed better than Ethereum and Bitcoin. In a brief period, the trendy altcoin also overthrew BNB to become the fourth-largest cryptocurrency by market capitalization. Since then, it has fallen back to fifth place, but Binance’s coin is still far ahead.
The blockchain has been under fire for frequent outages, which are said to occur because speed is given priority. The failure of FTX and Alameda Research was a big test for the Solana ecosystem. To the relief of the cryptocurrency community, initial concerns about Solana’s involvement were soon allayed.
This tenacity was further shown when Solana’s price, reached its bottom during the bear market, sparking a rally driven by strategic alliances as well as technical advancements.
The advent of meme coins such as BONK on Solana is a testament to the network’s adaptability and allure; it has garnered a great deal of interest and trade volume and demonstrated the community’s passion for creative projects on Solana.
