Is Solana (SOL) the next big thing in Crypto?

Is Solana (SOL) the next big thing in Crypto?

This TabStocks article takes a close look and Solana’s pro and cons and asks: Is Solana (SOL) the next big thing in Crypto?

Solana is well known for its agility and precision among the altcoins.

Solana SOL launched in 2017 and has since then taken off, selling the prospect of a faster and low-cost token.

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Anatoly Yakovenko, worked previously as a software engineer at Qualcomm, Mesosphere and Dropbox.

Together with a team of other developers they proposed to create a single, scalable blockchain, which went on to become Solana SOL

Solana’s blockchain ecosystem is growing and its smart contracts facilitates a lot of applications like DeFI apps, NFT’s, & payment systems, contending with the likes of ETH.

Solana SOL currently sells at $46.2, plunging from monthly highs partly due to the Luna scandal.

The SOL crypto was at an all-time high of $259 in November 2021 and has lost 80% of its value since then.

So what is in the offing for SOL from a wider scope?

Merits of Solana SOL:

Solana SOL Partnerships

Solana works with major developers in the crypto world like FTX, Arweave OpenSea and many other to create a variety of blockchain solutions and projects.

Developer-friendly Solana SOL

Solana operates an open-source system allowing developers to flock in, coming up with many projects. This includes GameFi apps, NFT’s and more with the community growing every day.

Significant attention and User-traffic for Solana SOL

Solana has attracted massive entry and is one of the fastest growing blockchain developers. It has seen increases of more than +600% in in the recent years.

Relatively affordable fees / price of Solana SOL

Solana’s transaction costs are a fraction of its arch-nemesis Ethereum. The token price is similarly attractively priced especially after the recent crypto collapse.

This gives SOL a competitive advantage.

Solid tokenomics for Solana SOL

Solana SOL circulating supply sits at 339.39M representing only 66% of the total minted coins.

With the market cap slashed to $15B, Solana SOL is comparatively small and has a huge growth potential.

Proof-of stake mechanism of Solana SOL

This is perhaps it’s main advantage, that allows it to process transactions faster and more energy-efficient than Ether. Speed is the name of the game and SOL dominates here.

Solana SOL is Building the Digital economy

Networks are vital in the tech world and SOL is gearing up to do just this. The protocols that enable them to be, an all-developing platform will serve it well.

Investors are looking for builders and SOL embodies this.

Demerits of SOL:

Solana SOL and Centralization

This might Solana SOL’s largest drawback as it has less than 200 validators. Crypto pitches for decentralization and SOL violates this.

Distributed ledger protocols and Solana SOL

Solana SOL leads to dilution of the circulating supply which makes each token less valuable over time.

Network outage has also become a ring issue, with multiple outages reported.

Uneven power structure and Solana SOL

Research has found that 48% of SOL initial token allocation goes to insiders and 13% to the SOL foundation. This is gross bias that compromises fairness to the average Solana SOL retailer.

SOL is very promising at the moment, and could do well in the long haul.

Just like the dot com bubble, Crypto will follow similar trends.

Many will undoubtedly be wiped out, but the paranoid ones that survive will change the world as we know it. Solana SOL might be one of these.

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