Solana, otherwise known as the ‘Ethereum Killer,’ is a blockchain, with its native coin (SOL) being a popular choice as an asset for investment. It was built with a similar purpose as Ethereum – to host scalable decentralized applications. Currently, many platforms offer ETH to SOL exchange, answering the increasing demand.
The blockchain was developed by San Francisco’s Solana Labs with the primary goal to make the creation and running of dApps easier, and this has been a success. To ensure this, Solana uses the cutting-edge Proof of History (PoH) and Proof of Stake (PoS) mechanisms.
Additionally, the blockchain can process over 65 thousand transactions per second and offers lower fees than its counterparts. So, that is what makes Solana, along with its native currency SOL an outstanding and useful asset:
- It is one of the most versatile and fast-growing ecosystems that can beat others in terms of running dApps.
- It is highly eco-friendly since the blockchain relies on sustainable technologies with insignificant impact on the planet.
- The Proof of History (PoH) lets it verify transactions fast, smoothly, and without mining.
- The Proof of Stake (PoS) and Proof of History (PoH) models ensure safety and handling large transaction volumes.
- Solana uses smart contracts and, thus, supports not only DeFi applications but also NFTs.
These facts speak in favor of SOL as an asset that will stay around and be a useful investment. Although its value tends to change from a bearish trend on the major stock market to bullish, the blockchain is believed to become the most effective platform.
To Buy or Not to Buy: Arguments For and Against
We have some good reasons to consider for anyone desiring to delve into the matter more.
SOL is worthwhile purchasing because:
- It is liquid and relevant.
It’s no secret that SOL has a $11 billion market cap, is very active, and keeps its trading volume among the top 8 cryptocurrencies. This is supported by the strong DeFi market and chains and far-and-wide adoption.
- Staking opportunities.
SOL is a good option if you consider passive income too. This is often reached by managing the validator or sending SOL tokens to staking pools.
- Huge NFT market.
Solana sales of NFT tokens already exceeded 1 billion dollars and made it the second most successful NFT market. Here belong collections such as DeGods, Blocksmith Labs, and y00ts, many of which have their own utilities: play-to-earn (P2E) games, NFT staking, asset monetization, etc.
- It is a large-scale blockchain.
Solana has shown an amazing capability to catch up with the growing demand and stay attractive regardless of trends. For instance, even when the network activity is extremely busy, the price of Solana transitions remains under $1, – 0,000005 SOL, to be precise.
With these benefits, no wonder the token is celebrated that much. At the same time, users might be dissatisfied with their purchase on the ground of the following:
- Stability.
Now, there isn’t such a thing as a reliable platform. Solana experienced 5 outages in recent times, with the latest one lasting several hours. This can interrupt transactions and make users lose moments when it’s most profitable to sell or buy.
Conclusion
Since Solana is one of the fastest and cheapest blockchains, it will surely stick around and have its community widen more and more over time. To sum up, we can claim that it’s both a long-term and speculative investment that would pay off.
If you’re sure of your ability to make a timely and wise purchase in the form of SOL, choose reliable exchanges such as https://letsexchange.io/, and don’t forget to weigh all the risks and potential benefits. LetsExchange can offer you nearly 4,000 different tokens: buy them with crypto or over 80 fiat currencies.
