SOL/USD Technical Analysis
SOL is Solana’s utility token, which was released to the public in March 2020. Solana promised to provide incredibly short processing times and good scalability. SOL is building up its popularity in the cryptocurrency world and that has made Solana’s price perform well. Though SOL is fairly new compared to other cryptos, its performance has grown tremendously in the past few months, making it one of the world’s best performing cryptocurrencies.
SOL has about 272 million tokens in circulation, and the total supply cap is 494 million. This native token can be earned as a reward for running programs or validating transactions on the Solana blockchain. People can also earn SOL by staking their tokens, and SOL users can also utilize it to pay transaction fees incurred either through transfers or when interacting with smart contracts.
Solana shows significant advancement in the crypto industry and is said to be on par with Ethereum for its innovative technology. It also most definitely provides strong competition for Bitcoin.
Solana is the world’s first web-scale blockchain that can handle thousands of transactions per second. Founded in 2017, it uses a unique method of ordering transactions to improve its speed, utilizing an advanced innovation called PoH or Proof of History. In 2020, Solana was launched on Mainnet Beta. It is known that Solana has an incredible TPS (transactions per second) of almost 60,000. Since the Mainnet Beta launch, this network has become a mecca for developers wanting to build and establish a market-ready application that has the same benefits as this blockchain.
Solana’s team is aiming to bring in the right affiliates and capital to help build products and tools that will accommodate billions of users. In June 2021, Solana Labs raised $314 million that will accelerate the deployment of a market-ready application.
Solana is spearheading blockchain advancements in the crypto world. It solves many conventional issues that earlier blockchains have, in terms of scalability and speed issues. It came to a test and despite global issues, Solana has moved up and expanded its reach through advanced developments. This platform can now compete with strong competitors, like Ethereum and Bitcoin, which could add to the future of the SOL prices.
Solana was founded by Anatoly Yakovenko, CEO of Solana Labs. He started working on the Solana project in 2017, teaming up with his former Qualcomm colleague Greg Fitzgerald. A few co-founders were added, namely Alan Yu, Eric Williams, Raj Gokal and Stephen Akridge. Three years later, the Solana protocol and SOL token were launched. The Solana Foundation, which has its headquarters in Geneva, Switzerland, continues to expand its project.
The Solana ecosystem is growing rapidly and getting really strong, with 250 current projects, including DEXs, lending protocols, digital games, storage solutions, staking platforms and wallet solutions, to name a few. In 2020, FTX launched Serum, a decentralized exchange that was built on the Solana Blockchain. This launch sent Solana’s price up to 5 USD, just two months after its release.
When Solana combines with other innovative projects, this results in a wider and more affordable solution. To date, Solana is the fifth-largest Smart Contract Platform, and it has proven to be a dependable solution for decentralized applications.
SOL Price Factors
Solana is beating the market as it continues to earn funding and public recognition. Because it is seen as a serious and highly innovative project, SOL’s rate could be influenced by investors looking for long-term investments and companies that believe in Solana’s capabilities.
SOL has moved aggressively since its introduction. 500 million SOL tokens were initially minted when the network was launched. As a deflationary mechanism, Solana transaction fees are paid in SOL, and by design, they can be destroyed permanently by burning. This decreases the total supply, and through this mechanism, a healthy SOL price is maintained. Currently, the total number of tokens in circulation is close to 272 million.
Solana is one of the cryptocurrencies that took the crypto world by storm, with its innovative way of processing more transactions per second. SOL has a 24-hour trading volume of $500 million and it is being traded on 45 crypto exchanges. Solana trades on 101 active markets, with its top three highest volume pairs, namely USDT ($328.69M), USD ($157.22M) and BTC ($35.72M), which makes it an attractive investment for investors around the world.
SOL has earned its popularity among DeFi users, as it has significantly lower latency and fees than Ethereum. There are almost 32 crypto exchanges where you can buy, sell or trade SOL. This translates to high scalability and utility of the coin, which has a relative effect on the rate of Solana.
Global Financial Crisis
Despite being introduced to the public during a global pandemic, the SOL price went up as high as $5 in 2020. In spite of the challenges, Solana’s advancement provided sure support for the crypto, as seen on last year’s Solana price chart.
News in the media
We have seen SOL’s rate surge and plunge, based on news articles, tweets or other social media posts. Solana is an interesting investment, since it has been collaborating with big organizations and networks, and this could have a positive impact on the price of SOL.
To start trading Solana, find a reputable trading platform that is easy to use, that also offers reliable tools, such as comprehensive SOL price charts, which benefit both new and long-time traders. There are quite a number of exchanges on which you can buy, sell and trade SOL, so finding the best one won’t take that long. Once you find the right trading platform and put funds into your account, you can start your trading journey. Ensure that you find a Solana-compatible wallet in which you can store your coins, for either long-term or short-term plans.
Since the crypto market is extremely volatile, trading Solana requires a solid strategy. Gain as much knowledge as you can, in order to understand the market movement, the technology and the risks involved. Predicting the market is quite difficult, but learning how to analyze charts, particularly Solana’s price chart, can help you considerably with your trading plan. Proper knowledge about Solana creates a level of stability that can help you earn more and minimize your losses.
SOL/USD - FAQs
The Solana protocol and its native token, SOL, were launched in March 2020. The Solana price has gained good traction since the beginning of the year. Solana shows a strong adoption by many developers, making it a good alternative to Ethereum.
SOL can be purchased on many high-end and trusted exchanges. You will need to create an account on a crypto exchange that caters to Solana. Search for an exchange that offers a reasonable SOL rate and a convenient way to trade it against other currencies.
SOL tokens can be stored on mobile devices in Trust Wallet and other SPL-supported wallets. If you plan to stake your Solana tokens, you will need to transfer them to a wallet that supports staking. You will be guided accordingly on the step-by-step process. There is also a hardware wallet that allows you to stake directly from it.
The native cryptocurrency of Solana is SOL, which functions as its utility token. You can pay your transaction fees with SOL whenever you use Solana’s network or interact with smart contracts. You may also use SOL to vote on changes to Solana.
Some countries have imposed restrictions on investing in cryptocurrency, while buying and selling are still allowed in most places. However, the legal standing of cryptocurrencies differs from country to country. Currently, there are no absolute reports about any bans on buying Solana.
The United Kingdom does not have any law that particularly regulates cryptocurrencies like Solana. Buying, selling or investing in Solana is allowed, though all crypto exchanges need to follow a protocol and register their business according to the FCA rules.
The risk of trading cryptocurrencies, including Solana, is higher, because it is decentralized and non-regulated. Solana is no stranger to fast-paced growth, as it is now among the top 20 largest cryptos by market cap. This means Solana will keep rising, even in a highly volatile market.