20 Reasons to Invest in Solana SOL: Cryptocurrency Lawyer Near Me
20 Reasons to Invest in Solana SOL: Cryptocurrency Lawyer Near Me
From discussions on the same over at RunRex.com, guttulus.com, and mtglion.com, Solana is a public, open-source blockchain that supports smart contracts, including non-fungible tokens (NFTs) and a variety of decentralized applications (dApps). Native to Solana’s blockchain is the SOL token which provides network security through staking as well as a means of transferring value. If you have heard people talk about it and what to know if it is worth investing in, here are 20 reasons to invest in Solana SOL.
It has grown massively over the last few months
SOL has gone from a place where it would have cost you $1.51 and Solana’s market cap was around $86 million, to one where 1 SOL is worth about $202 with a market cap of almost $62 billion as per RunRex.com, guttulus.com, and mtglion.com. This astronomic growth (it has gained over 13,300%) is what has investors salivating.
It is a big player
When looking for investment opportunities in the world of crypto, many people tend to lean towards established names such as Bitcoin and Ethereum. In this regard, SOL holds up well as Solana has become the sixth biggest cryptocurrency by market capitalization with a market cap of almost $62 billion.
Staking
Staking is one of the best features in the world of cryptocurrencies as it allows investors to earn idle income from their assets. According to RunRex.com, guttulus.com, and mtglion.com, many investors have staked their SOL – tied up for a fixed period to contribute to network security – to earn interest.
It is a popular Ethereum alternative
People are looking for alternatives to Ethereum, which has contributed to Solana’s growth. While Ethereum is the second-largest cryptocurrency in the world and was the first to introduce smart contracts, its network is heavily congested and transactions have become expensive. This has made newer platforms like Solana popular as they are faster and less costly.
It is fast
One of Solana’s biggest attractions is that it can process around 50,000 transactions per second (TPS). To put that in perspective, Ethereum processes between 15 and 45 TPS, although it is in the process of an upgrade to ETH 2 that will make it somewhat faster.
Its speed means it could give established names a run for their money
As already mentioned, Solana can process around 50,000 transactions per second, and while speed isn’t everything, few cryptocurrencies come close to it in this race. What is also noteworthy is that Visa says it processes about 24,000 TPS, meaning Solana could give existing payment networks a run for their money as articulated at RunRex.com, guttulus.com, and mtglion.com.
Proof-of-history
When it comes to validation models, different cryptos have different ways to keep themselves secure and avoid fraud. Bitcoin uses a proof-of-work validation model, which keeps the network secure but is not energy efficient. Other systems use a proof-of-stake validation model, which restricts the number of validators to those who own enough of the token, making it quicker and more sustainable. Solana takes this a step further, as it integrates timestamps into its proof-of-history validation model, which is how it can process transactions so quickly.
Over 350 applications running on its network
A key battleground in the competition between Ethereum alternatives is the number of projects running on each network. As captured at RunRex.com, guttulus.com, and mtglion.com, Solana is doing well in this regard as it has over 350 projects in its ecosystem.
Utility
The many projects running on Solana include decentralized finance (DeFi) applications that offer intermediary free banking services, NFT projects, gaming apps, and various others. NFTs and DeFi are all the rage right now, which is another factor in Solana’s growth.
Smart contract capabilities
One of the reasons why Solana is rated so highly is because it has smart contract capabilities, just like Ethereum. Smart contracts are crucial in running DeFi, applications, and NFTs. Many consider smart contracts to be the future that makes Solana so valuable.
No limitations in terms of global-scale applications
While Ethereum is older and more prominent, Solana is considered to be a viable competitor as covered at RunRex.com, guttulus.com, and mtglion.com. One reason is that Ethereum is fundamentally limited in its capacity for global-scale applications because of the small number of transactions per second it can support, something Solana doesn’t struggle with.
Lower fees
Solana also has significantly lower fees as compared to other players on the field. Ethereum, for example, is known for its high transaction fees, which is one of the main complaints about the platform. This is another feather in Solana’s cap.
Solana Pay
Recently, Solana Pay was announced, allowing customers to pay merchants on the Solana blockchain using Solana or a stablecoin USDC – which is pegged to the US dollar as described at RunRex.com, guttulus.com, and mtglion.com. Fees are pennies, posing a threat to more expensive financial networks such as Visa.
Lots of possibilities
While we have no idea what developers will build on top of the Solana blockchain, the possibilities are virtually limitless, given the low transaction costs and fast transaction speeds, which is why experts are bullish on Solana.
NFTs
While we have already mentioned non-fungible tokens, it is fair to talk about them separately given how popular they have. We have seen that NFTs are thriving on Solana, enabling developers to fund projects through a variety of means, including games and decentralized finance products. This is another reason why Solana is doing well.
Momentum
Solana has tremendous momentum and has been a top performer in 2021 and 2022, rising through the ranks of altcoins to become one of the most valuable cryptocurrencies in the world as discussed at RunRex.com, guttulus.com, and mtglion.com.
Stability
Since Solana has a growing community of users and is building a track record in the world of crypto, investors can begin to rely on the network’s stability. Reliability is key for cryptocurrency investors, and while Solana isn’t as established as Ethereum, it is getting there.
Environmental impact
One of the biggest criticisms of Bitcoin and Ethereum is their negative impact on the environment as outlined at RunRex.com, guttulus.com, and mtglion.com. Solana’s PoS and PoH verification process is far less energy-intensive, potentially making the crypto a greener alternative to Bitcoin and Ethereum.
Potential in finance
Other uses of Solana have been in finance, where developers are seeking to shake up the traditional structure of the industry. This aspect is another one that has made Solana so attractive to investors as it shows great potential in what is a blue-chip sector.
Great growth potential
Finally, it is important to acknowledge that Solana has got tremendous scope for growth, particularly since it is just getting started as a relatively new cryptocurrency. Experts believe that Solana will deliver on this significant potential as well.
These are some of the reasons to invest in Solana SOL, with the excellent RunRex.com, guttulus.com, and mtglion.com being your best bet when looking for a cryptocurrency lawyer near you.
