Given the ongoing interest for Solana among institutional investors, it’s not hard to see how this could contribute to the token’s growth in December.
While there were some stellar performers in the cryptocurrency market this year, not all of them managed to do as well as Solana. Launched in 2020, SOL is quickly becoming known as a possible ‘Ethereum Killer’. In just 4 months, it has risen from obscurity to be worth 16,000% more than its initial value. Solana’s been gathering a little bit of fame lately, from people in the finance sector and more institutional investors. After gaining its name in the Defi, NFT, and gaming sectors it’s all set to take on Solana’s price of US$300.
Solana is a blockchain platform and DApp hosting company which specializes in smart contract functionality. Solana’s price at the start of the year was US$1.51 and it’s market cap was US$86 million. In recent months, its value surged from this point to reach a new percentage today of around US$260 and a market capitalization of about 70 million USD. After hitting a record high in November, Solana emerged as the fifth-largest cryptocurrency. There are various factors contributing to this growth. People are looking for a coin that can compete with Ethereum, rather than just create alternatives to it. Solana has caught the attention of many Ethereum supporters because it has features such as shorter confirmation times and lower energy requirements. SOL can process up to 50,000 transactions per second, while Ethereum can do about 15-45 transactions per second. The biggest selling point of Solana is its Proof of History (PoH) and Proof of Stake (PoS) system which records and processes transactions quickly. But is Solana poised to breach US$300 before the end of 2021?
Grayscale Solana Trust offers a promising investment opportunity
On December 1st, the price of Solana surged by 9% as a result of Grayscale Investment’s announcement about starting to offer to invest in cryptocurrency. So far, Grayscale Investment has made some big announcements that they will now be offering investors the option to invest in cryptocurrencies such as Grayscale Solana Trust.
Already, investors interested in the Solana Platform are flocking to the platform due to its cheaper and more efficient services. With Grayscale opening a new venture with less risk for these investors, cryptocurrency will undergo a major shift.
‘Less Energy Consumption’ of Solana
An article by Solana explains that the energy consumption of our platform is much lower than other cryptocurrencies. This means less power will be used which equals an environmentally greener cryptocurrency. As per their latest Energy Use Report, Solana claims that if you transact on SOL it will consume less energy than if you had simply done two separate Google searches. A new report shows that Google consumes 2,160 Joules of power for every search while Solana only needs 1,837 Joules.
This energy consumption report might help Solana, as its less than 2,000 Joules of energy is impressive compared to bitcoin transactions (6,995,592,000 Joules) and Ethereum (692,820,000 Joules).
Tech company Solana is targeting friends of gamers to help grow their presence in the gaming market.
Solana announced their participation in a new US$100 million fund to boost blockchain gaming at the beginning of November. After the announcement, Solana’s price went up by 17%. This means that it is now ranked #4 in the top 10 list. The cryptocurrency SOL has managed to continue on an upward trajectory in the US$526 million market value gap between it and Ethereum. If SOL continues on its “to the moon” path, it could potentially overtake ETH someday.
The Solana price has been steadily increasing, can it break the resistance of US$300 before 2022?
At the time of writing, Solana’s price was $223.87. But before considering the $300 mark, it first has to reclaim its November record high of $260. As November was coming to an end, the volume of cryptocurrency decreased substantially to 1.4 billion. The value of Solana has gone up three-fold in the last few days, which is very positive for it to breach any other values in the coming days. It should hold on to this current price without going below $220 if it wants to continue its bullish momentum. The stability of this coin will help it rise in value before 2022. It’s unclear if SOL could breach the US$300 mark before 2022, but it will have the potential to do so next year.