Solana (SOL) is a blockchain network designed to support decentralized and scalable applications. It was launched in 2017 as an open-source project overseen by the Solana Foundation, headquartered in Geneva, and developed by Solana Labs in San Francisco. Unlike Ethereum, Solana stands out for its fast transaction processing and low fees. The native cryptocurrency of Solana, also called SOL, experienced a significant increase in value in 2021, reaching a market capitalization of over $75 billion. However, it faced a market downturn in 2022, with its market capitalization dropping to around $3.63 billion. Despite this, SOL managed to recover a significant portion of its lost value.
Key Highlights:
– Solana serves as a platform for scalable and decentralized applications.
– Solana has reached price levels similar to those in April 2022.
– It surpassed Ripple and Binance Coin in market capitalization.
– Solana can handle a higher number of transactions per second and has lower transaction fees compared to Ethereum.
– Solana operates on a proof-of-stake (PoS) model and incorporates proof-of-history (PoH) to validate transaction timing using hashed timestamps.
– Chart analysis suggests a significant surge, reaching a higher high at $146.
The recent increase in SOL’s price is believed to be influenced by the high gas fees on Ethereum and Solana’s distribution of airdrops like Bonk. Ethereum’s transaction costs spiked, prompting users to seek alternatives with lower fees. This increased interest likely contributed to the positive momentum in Solana’s price. The number of active addresses on Solana has surged by nearly 400% in the last three months, contrasting with Ethereum’s modest 3% increase.
On the hourly chart, there are indications of resistance, but the ascending support suggests a potential breakout and a move towards a higher high, possibly reaching $146. In the short term, SOL’s price may aim for another high around $146 before potentially undergoing a correction. The outcome of this correction remains uncertain, but if the price finds support around $80, it could initiate another upward trend leading to a new all-time high in 2024.
Solana achieved a significant milestone by surpassing Binance Coin (BNB) in market capitalization, securing the fourth position in CoinMarketCap’s rankings. Solana’s market capitalization currently stands at $50 billion. It has also seen an increase in trading volumes on Coinbase, surpassing Bitcoin and Ethereum. Solana’s decentralized exchange volumes have outpaced other chains by 3,078% compared to Ethereum.
The recent airdrops, particularly the Bonk memecoin, have contributed to the increase in daily active addresses and the price surge on the Solana blockchain. Additionally, Solana has attracted significant institutional capital, with investment funds associated with Solana receiving higher inflows than Bitcoin and Ethereum in December.
Solana was conceptualized by Anatoly Yakovenko, who recognized the importance of a dependable clock in network synchronization. He introduced the proof-of-history (PoH) concept to enhance the speed of blockchain networks. PoH confirms the passage of time between events and encodes this timeline into a ledger for consensus. Solana underwent further development, transitioning to cloud-based networks and introducing its own token standard called SPL Token.
Anatoly Yakovenko’s PoH concept revolutionized blockchain technology by addressing the lack of synchronized time across nodes in existing blockchains. Solana has achieved significant milestones in terms of transaction processing speed and scalability, making it a popular choice for developers and users.
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