This crypto will be the Moderna of 2022

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Moderna was one of the stars of the stock market this year. The biotech company has been on everyone’s radar screen as it markets its coronavirus vaccine and has generated billions of dollars in revenue and profits. It is the story of a small player who reached the big leagues.

And in 2022, there is a cryptocurrency that could follow a similar path. He can go from a new hope to a proven crypto. I’m talking about Solana (SOL -2.27%). The platform was launched in the spring of 2020 and has grown steadily since.

Image source: Getty Images.

Start small, end big

Of course, Solana’s price increase this year has already surpassed Moderna’s and pretty much every other stock. It climbed 13,600%. But in my comparison, I focus on the idea of ​​starting small and ending the year as a major, established actor. Moderna did it. And if Solana can do it, too, the crypto could extend the 2021 increase.

So … why Solana? The blockchain stands out for several reasons. The first is speed. Solana uses a proof of history method to validate transactions on the platform. This involves marking each block of data with some sort of timestamp. The process makes it easier and faster for validators to do their jobs. In the end, Solana processes around 50,000 transactions per second. And the way Solana was designed means that the platform can potentially process over 700,000 transactions per second. This far exceeds the speed potential of market leader Ethereum. This platform aims to process up to 100,000 transactions per second after an upgrade set for next year.

Speaking of the other players now, the great thing about Solana is that he works with them. Here is what I mean: Solana has developed a bridge that allows the transfer of assets across networks. This bridge, called Wormhole, works with Ethereum, Polygon, Terra, and Binance Smart Chain. This will clearly boost the use of Solana as it means that users don’t have to choose between Solana and other players. Instead, they can use them all.

Advance in decentralized applications

Another point to note about Solana is the progress made in the development of decentralized applications. The platform hosts more than 350 projects, from non-fungible tokens to fund to games. This variety of applications running on Solana shows the real usefulness of the platform. Ethereum is still ahead of Solana in terms of number of projects. And this blockchain has the first advantage in the market. But there is room for more than one player in this area. So it’s possible that both Solana and Ethereum will be key players on this scene in the future.

Solana has had a great year in terms of price performance. But next year could be even bigger. Because Solana will prepare the ground for the long term. Like Moderna, he could go from being a new and risky actor to one who shows he has what it takes to be the leader in his field in the future – and gradually find his place in more and more investment portfolios.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are motley! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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