Until recently, no one knew about the Solana (SOL) cryptocurrency, and the loud name of another ‘ETH killer’ sounded too pathetic. But Solana broke into the leaders of cryptocurrency rating and increased by 24% in price at the beginning of November.
Currently, the SOL coin is in fifth place in the rating of the largest cryptos by market cap, overtaking the old-timers Cardano and XRP. How did it happen that the Solana rate skyrocketed to $250? What is the prediction for Solana price? Today, we will try to find out!
History of Solana Cryptocurrency Creation
Before considering the Solana price prediction, let’s learn the basic information about the project! Solana was created in 2017 by former Qualcomm employees Anatoly Yakovenko and Greg Fitzgerald, as well as by Ph.D. and data scientist Erik Williams. The beta version of the system appeared in 2020.
In a white paper, Yakovenko described the main goal of Solana — to reduce the amount of time it takes blockchain nodes to synchronize or reach consensus. The high speed should help developers scale their dApps and ensure that their user base grows rapidly.
To provide the necessary performance, Solana, in particular, uses a proprietary Proof of History (PoH) algorithm along with a Proof of Stake (PoS).
PoH allows to record an event that has occurred even before the transaction data is added to the blockchain. Thus, nodes in the Solana blockchain can create blocks without coordinating their actions with the entire network and reduce the time required for this process.
By the way, Yakovenko already had experience in developing algorithms that increase work efficiency when he was an employee of the DropBox cloud service.
Solana uses several more technologies designed to increase the speed of the blockchain. Among them are, for example, the Turbine protocol, which breaks down all information into small chunks. Thus, Yakovenko once said:
Basically, the speed of light is how fast we can make this network go.
What Is Solana Cryptocurrency?
The Solana cryptocurrency, which is used on the blockchain of the same name, can be obtained by confirming transactions or using programs in this ecosystem.
The user can also passively earn tokens thanks to the PoS algorithm, distributing rewards among users. Its size will depend on the amount of cryptocurrency they have accumulated — this process is called staking. The principle of operation of the new version of the Ethereum blockchain (Ethereum 2.0) is based on it.
As is the case with Bitcoin, SOL emission is limited to 489 million coins.
What Is the Prediction for Solana Price: Key Prospects to Know
As for the name of ‘ETH killer,’ it is too early to talk about it. So, only a few dozen decentralized apps are based on Solana, while Ethereum already has several thousand of them. However, this is easily explained by the fact that Ethereum was launched in 2015.
In addition, a lot of prominent investors believe in optimistic Solana price prediction today. In early June, the startup was able to raise more than $314 million. A significant part of investments was made by one of the leading investment firms of Silicon Valley, Andreessen Horowitz, one of the first investors in Skype, Facebook, Twitter, Coinbase crypto exchange, and other successful companies. In the week since the funding round, Solana’s price increased by 40%.
Fun fact: The exact amount Solana raised in the investment round was $314,159,265.359 million, which is equal to the number pi multiplied by 100 million.
So, what is the prediction for Solana price? Will it really become a killer of the second-largest crypto by market cap? Well, apparently, Solana doesn’t strive to become an ETH killer. So, in an interview with TechCrunch, Yakovenko said that he is not ‘rooting against Ethereum.’
Solana Price Prediction Today
Today, Solana seems to be going through a correction phase. Thus, it is hard to make an accurate Solana price prediction today as well as say how hard this correction will hit the coin. However, we can still make some estimated price predictions.
The SOL price may hit the $300 mark by the end of the year if a bullish trend were to reemerge. Alternatively, if the hype it has caused turns out to not be enough, and its holders get affected by FOMO, SOL owners might sell off their remaining coins to try and get some profit, thus decreasing its price.
However, unlike most unstable altcoins, Solana has not only the hype around itself but also a genuine interest in its functionality.
Solana Future Price Prediction
So now it’s time to find out the Solana future price prediction. At the time of writing (November 2021), the Solana rate is $240. Even the most optimistic forecasts did not assume such a growth in the coin’s price. With a market cap of $72 billion, SOL reached No. 5 in the global cryptocurrency rankings.
Solana’s growth has continued since late July. On August 1, the token was trading at $36.25, and by September, its price exceeded $100 for the first time in history. The first break above the $200 mark took place in mid-September.
While making the Solana future price prediction, experts believe that a combination of factors led to the explosive growth of the Solana rate. Let’s name the main ones:
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- The overall growth of the cryptocurrency market. Following Bitcoin, other coins often rise in price — this is called the season of altcoins.
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- Many people really see Solana as a good alternative to Ethereum, especially from the technical side.
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- Large-scale conferences like Breakpoint, always stir up interest in the coin around which they are organized.
As for the Solana price prediction 2021, now the experts are competing in the most optimistic forecasts. WalletInvestor has the riskiest one — they believe that Solana could reach $479 in a year and $1,578 in five years.
DigitalCoinPrice forecasts the SOL rate to reach $270 by the end of this year and $344 in a year, while gov. capital predicts a price of $454 by October 2022.
Conclusion
Solana is considered a good alternative to Ethereum in the cryptocurrency community. In addition, the creators are actively promoting the coin and even organized a large Breakpoint conference in Portugal for the community.
What is your Solana price prediction? Feel free to share your price forecasts in the comments below!
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