Why did Solana cryptocurrency jump 10,000% in 2021?
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Answer Why did Solana cryptocurrency jump 10,000% in 2021?
The digital currency Solana, SOL, has made a splash in the past few weeks, and has made many individual and institutional investors take note of the crypto market and its potential for crazy highs.
It is worth noting that the cryptocurrency Solana did not record any significant gains during the second half of 2020, while its popularity surged in 2021 as it witnessed huge demand from retail and institutional investors.
Shows your most recent data Queen Market Cap The Solana cryptocurrency gained nearly 10,500% in 2021, making it the top performing cryptocurrency among the top 10 cryptocurrencies.
SOL started this year at just $1.5 and touched an all-time high of $210.
Meaning that the one who bought Solana for $1,000 in January 2021 will now have more than $100,000 at the time of writing this article.Read:Ethereum founder Vitalik Buterin comments on the Ethereum Classic network!
Solana’s trading volume and overall network activity have increased significantly in the past few months.
The most surprising part of Solana’s recent rally is the interest of institutional investors in the world’s seventh largest cryptocurrency.
Last week, Solana’s investment products attracted $50 million worth of institutional flows, which is more than the combined weekly flows of bitcoin, ethereum, Cardano, Polkadot, and XRP.
What is the main reason behind the massive gathering of Solana in 2021?
Cryptocurrency analysts believe that the technology behind Solana is better than most of its competitors, which is why the adoption of Solana has increased significantly in the past few months.
Secondly, the fear of losing (FOMO feelings) plays a major role in the recent rise of the SOL cryptocurrency.
Technical advantages of the Solana project:
Maria Stankevich, chief business development officer at EXMO UK, believes Solana’s high speed and low cost of the deal play an important role in its global adoption.
As Maria commented on this by saying:
To be honest, before the Solana project, we heard many times about so-called Ethereum killers like Cardano and Polkadot.Read:Egypt lifts ban, allows licensing of crypto and cryptocurrency companies
Where they tried to solve the challenges faced by Ethereum.
But Ethereum is still the absolute champion in the world of decentralized finance.
The Ethereum network attempts to solve the massive network overload problems that make it impossible to scale the network to millions of users.
Solana tells that its blockchain can support more than 50,000 transactions per second (TPS) making it the fastest blockchain ever.
It is 3000 times faster than Ethereum.
Also, the average block time is 400-800 milliseconds, and the average commission for a transaction is 0.000005 SOL (less than a cent!).
Another secret of Solana is a new protocol based on proof of history.
Maria added in her statement:
The main advantages that affected the price hike were: high speed and lower transaction cost, more eco-friendly blockchains, scalability (without hashing and second tier solutions), and many partner relationships within the network.
Maria also explained that Solana’s focus on dapps in the Defi system, the experienced team, the inclusion in several trading platforms, the potential for earning through currency stakes and the security that the currency provides are all factors that helped increase the demand for Solana.Read:After a long wait … Facebook announces the date for the availability of the digital currency “Libra”
CryptoClear founder Johnny McMameli was asked about his views on the price movement of the SOL cryptocurrency and the main advantages of the Solana blockchain, and he replied:
Solana is an excellent long-term investment.
Solana blockchain ensures interoperability between ecosystem projects by maintaining a single international status such as network metrics.
Never deal with fragmented Layer 2 systems or broken chains.
Solana’s low-cost scalability forever ensures that transactions stay under $0.01 for both developers and users.
I think one of the main reasons behind the recent price hike of the digital currency SOL is FOMO (fear of missing out).
Those who do not own SOL and other crypto assets will fear that they have missed the boat and start investing as soon as possible.
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