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Many experts agree that 2022 could be a turning point not only for individual cryptocurrencies, but for the industry as a whole. Society is already almost ready to accept cryptocurrencies, and as cryptography is introduced into everyday life, the market will change.
In 2022, we should expect the growth of fast blockchains with support for smart contracts and non-fungible tokens. These functions are indispensable for the implementation of metaverse projects. Solana, one of the stars of 2021, is in the lead among the most sought-after and promising projects.
Solana network features
The project aims to create the most decentralized, secure and scalable platform that will support thousands of nodes without sacrificing performance.
The launch of Solana’s main network took place in the spring of 2020. Among other blockchains that support smart contracts, the network stands out for its high performance. The current speed reaches 5000 transactions per second, and the peak is 50000.
New blocks are generated every 400-800 milliseconds, and network fees are completely symbolic. This combination of technical characteristics best suits the needs of the decentralized applications industry.
How it works
The Solana network has implemented several of its own unique developments. To achieve consensus in the network, a combination of Proof of History (PoH) and Proof of Stake (PoC) mechanisms are used, which are enhanced by Practical Byzantine Fault Tolerance (PBFT).
PoH is essentially a decentralized clock. Fixing the timestamps of each transaction eliminates the need to calculate this parameter and the processing speed increases significantly.
Coin Solana (SOL)
The Solana network operates its own SOL token. It is used to pay transaction fees. SOL can be staked, and there is no lower limit on the size of the bet. Token holders can take part in governance.
In its short history, SOL has experienced unprecedented growth. During 2021, the proud coin set several price records. The first all-time high at around $58 was reached in May.
The general decline of the market did not bypass Solana either, the price of the coin rushed down.But even against the background of a downward trend in early summer, the exchange rate of Solana to USD briefly rose to local highs.In autumn, Solana surpassed all wildest expectations and reached $258.
The coin quickly broke into the ranking of the largest cryptocurrencies and still remains in the TOP-10 in terms of market capitalization.
Solana price forecast for 2022
It is extremely difficult to analyze the prospects for this only young altcoin. SOL price movements are likely to be in sync with general market trends.
The previous year was full of surprises and today there are several predictions on the net.
The most optimistic scenario considers a probable price corridor in the range of $280-300 with a possible maximum of about $500 per token. However, the implementation of such a scenario largely depends on the announced transition of Ethereum to a new protocol. Whether the transition date is postponed or Ethereum has technical problems, and Solana gets rid of its own shortcomings, the coin will have a good chance of strengthening its position.
Much more moderately expressed in PricePrediction.net, predicting the price of SOL around $210. According to the most conservative forecast, the average annual price of a coin is unlikely to exceed $119.
Is it worth trading Solana?
And yet, it is enough to look at the price charts for the last year to be convinced of the unpredictability of the cryptocurrency market. Analysts tend to believe that a period of particularly high volatility awaits us in the near future. Trading the SOL against the US Dollar can be very profitable.
Among the best places to trade cryptocurrencies against fiat currencies are Binance, Poloniex, Kraken and others. If you prefer long-term investments and want to buy SOL for cryptocurrency, it is better to do it on LetsExchange. You do not need to register an account and worry about your coins. You will be required to select the desired crypto pair in the exchange widget and confirm the exchange. As soon as the transaction is completed, the coins will go to your wallet.
However, we recall that all cryptocurrencies are classified as high-risk assets. You can really unexpectedly increase your capital, but the probability of losing everything is always much more than acceptable. Do not invest more in cryptocurrency than you can lose without catastrophic consequences for yourself.
You may also like: 7 Considerations When Choosing a Cryptocurrency Exchange
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