Solana currently ranks as the fastest-growing blockchain ecosystem in the world, featuring 400+ projects including Web3, NFTs (non-fungible tokens), and Defi (decentralized finance). Solana is fully decentralized and scalable for worldwide adoption. Plus, a single integration is all that’s required to access the network. As a user or a developer, the low-cost structure of Solana ensures perpetual affordability with transactions costs pegged at $0.01. Block times are completed in as little as 400 ms, with increasing network speeds with upgraded hardware.
The native digital currency for Solana is SOL. It is used for staking purposes and for paying transactions fees. SOL enjoyed a major price boost when an NFT collectible project known as the Degenerate Ape Academy launched on the Solana blockchain. Solana functions in a similar way to Ethereum. It assumes the role of a digital currency and as an ecosystem for creating crypto-based applications. Performance metrics indicate that Solana processes an estimated 50K transactions P/S, significantly higher than Ethereum with a maximum of 15. Owing to its speed and unique scaling capabilities, Solana can maintain extremely low fees.
This cryptocurrency’s developers are aiming to compete with centralized credit card payment processors like Visa, MasterCard, and American Express. Solana stands out from the crowd, notably Bitcoin, Ethereum, Litecoin, Ripple, and others since it utilizes smart technologies, notably a Proof of History (PoH) mechanism (a combination of both of stake and proof of history) allowing all computers on a decentralized network to interact and come to a consensus. Solana was created by Anatoly Yakovenko and Greg Fitzgerald to provide frictionless, cost-effective, rapid financial services to small, medium, and enterprise-level operations.
Solana has a circulating supply of 311,207,039.16, with a maximum supply of 511,616,946 SOL. The market capitalization (January 2022) stands at $43 billion, with a price per SOL of $138.44. Given the extreme volatility of the cryptocurrency market, prices can whipsaw wildly from one day to the next. SOL is a top 10 cryptocurrency.
The price of SOL and BTC have a 0.53 correlation coefficient, SOL and ETH have a 0.76 correlation coefficient, and SOL and XRP have a 0.85 correlation coefficient. The greater the correlation coefficient is to +1, the more in sync their pricing movements. Traders and investors holding sets of strongly correlated cryptocurrencies tend to experience profits or losses in both digital assets simultaneously.
Be advised there are no insurance safeguards against volatility with cryptocurrencies.