The digital currency ecosystem has thousands of cryptocurrencies that are available for trading. Of these numbers, Solana (SOL) is a major asset worth investing in this year. Created as a smart contract network, Solana has established itself as one of the major Ethereum (ETH) contenders, and at the moment, it is priced at $97.81 with market capitalization pegged at $42,650,132,135.
Solana has grown over the years and here are 7 key reasons why investors should consider buying the coin for potential gains this year.
Solana is one of the most attractive digital currencies because of its relatively cheaper price. Compared to Bitcoin (BTC) and Ethereum whose prices are pegged at $42,982.05 and $2,303.55, Solana is more affordable at $97.
When the best price of these coins are also factored in, the Bitcoin All-Time High (ATH) and that of Ethereum which comes in at $68,789.63 and $4,891.70 also far outranks that of Solana at $4,891.70. By price metrics Solana is a quality and cheaper asset to bag.
Historical Price Growth Potential
Solana has a rich history of outperforming the general market. In 2023, the cryptocurrency soared as high as 700% to rank as the best performing asset among the top 20 capitalized assets. Its growth is not just meteoric, it has a solid recovery rate as it bounces back from selloffs easily.
Judging by its history, there are reasons to believe Solana will also outperform the market this year and buyers might turn out profitable overall
Smart Contract Functionalities
Solana is home to some of the most popular Decentralized Applications (DApps) in the industry and it has gained a high reputation because of its fast speed, low cost and ability to scale relatively better than other competing networks.
Solana is also introducing a number of new innovations like DePIN and xNFTs among others that are helping it stay ahead of the curve in general. These innovations are boosting its attractiveness and might have a positive impact on the price moving forward.
Solana Mobile is by far one of the most important ventures the protocol has embarked upon in recent times. As the first blockchain network to launch a phone, Solana is gradually breaking into the modern tech world with the goal of simplifying access to Web3.
With Solana Mobile Saga and its incoming upgraded version, the blockchain is set to attract more users, and at the same time, drive more utility to the SOL token.
Solana is also driving enterprise adoption in a unique way. By opening up its ecosystem for diverse innovation, it has become an attractive option for innovators in the broader tech world to come in.
One of the most ambitious projects it hosts is Helium, a protocol providing telecommunications services to US residents. Helium has actually introduced an affordable 5G network in the country.
Committed Developers and Community
Solana has thrived thus far because of the rich experience and dedication of its co-founder Anatoly Yakovenko and the horde of developers contributing to the protocol. The blockchain also has a dedicated community that is invaluable in using the applications and solutions that are associated with the blockchain.
With this community, Solana can constantly gain improvements that would help sustain its growth this year and beyond.
General Market Sentiment
One other major factor that will also impact Solana’s price is the general market sentiment. Once Bitcoin is in a good place, the altcoin market generally outperforms.
Riding on this, the launch of spot Bitcoin ETFs and the forthcoming Bitcoin Halving are poised to cause a paradigm shift in Bitcoin’s price and Solana is well positioned to capitalize on this rally.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.