Solana is on fire in 2021! Should you buy crypto in 2022?

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Solana will break her resistance of US $ 300 before the end of 2021 and could even reach US $ 500 in 2022

Solana has become one of the top performing digital tokens of 2021. After growing 17,500% this year alone and calling itself the ‘Ethereum Killer’, SOL has also grown to prominence among new and former investors. Its ability to overtake traditional cryptocurrencies like Bitcoin and Etheruem with its underlying blockchain technology gave Solana’s price an edge. Furthermore, forecasts suggest that Solana will break her resistance of US $ 300 before the end of 2021 and may even reach US $ 500 in 2022.

While there are many reasons contributing to the growing investor interest in Solana, its price spike is only due to its performance and added features. Cryptocurrency topped the list this year and has grown from $ 1 billion at the starting point in 2021 to $ 70 billion today. Similar to Bitcoin’s supply limit and the newly introduced burn option in Ethereum, SOL also has a limited annual issuance. Currently, there are approximately 302 million Solana coins in circulation. When the coin premiered, it started out by increasing its supply by 8% per year, but that number decreases by 15% each year, until it finally hits 1.5% per year. Even though Solana’s price has risen sharply, instead of just looking at recent gains, investors should look at its timing and check out the factors that could be causing its price to spike.

The basics of Solana

Founded in 2017, Solana is an open source platform designed to host decentralized and scalable applications. Managed by the Geneva-based Solana Foundation, the blockchain was built by San Francisco-based Solana Labs. Solana’s cryptocurrency, SOL, increased in value and adoption in 2021 after reaching an all-time high. Solana co-founder Anatoly Yakovenko published a White Paper on the Concept of Proof of History (PoH) which laid the foundation stone for the SOL digital token. PoH is proof to verify the order and passage of time between events, and it is used to encode the passage of time without confidence in a ledger.

How has SOL performed in 2021?

The growing demand for Solana parts in 2021 was largely due to two things. One is its growing functionality and inclusion and the other is its competitor, Ethereum’s performance. Often referred to as the “Ethereum Killer,” SOL currently occupies the fifth position in the cryptocurrency market. The digital token was valued at $ 258, its highest level yet, after entering 2021 at $ 1.5. During the May 2021 price hike, Solana’s price jumped 750%, giving the virtual token a boost. Its smart contract capabilities and low cost easy transactions are contributing to its growth.

Will Solana reach US $ 300 before the end of 2021?

Since the beginning of November, altcoins seem to have gained ground in the cryptocurrency market. Yes, altcoins have been successful in rocking major cryptocurrencies including Bitcoin since then. Likewise, Solana is also in a testing phase where she tries to break her resistance of US $ 300 before the end of 2021.

Similar to Ethereum, SOL also sometimes follows the trend of Bitcoin. That being said, Solana has fallen since Bitcoin hit a record US $ 68,000 in early November. At the time of writing, the cryptocurrency is trading for US $ 187.14. Therefore, its potential mark is to surpass its previous high of US $ 260. Whenever Solana faces a downturn, he manages to stabilize his value and recovers quickly. Experts believe that this pullback also indicates an upcoming price spike that could help SOL hit US $ 300 before the end of 2021.

Why should you invest in SOL now?

There is no right time to invest in cryptocurrency. If you are considering a long term investment, you can buy the digital tokens at any time and hold them for a period of time. Likewise, investors can buy Solana at any time as it is relatively stable compared to other traditional cryptos and memecoins. However, there are a number of factors that indicate why investors should surely buy SOL.

While Bitcoin and Ethereum consume a lot of energy for the mining princess, Solana remains in the safe zone as it consumes all the energy that two power plants would consume.

As more and more people seem to be interested in NFTs, Solana appears to be a great way to play on the rising interest in NFTs. Via Solonart, an NFT marketplace on the Solana network, NFT investors have the opportunity to buy and sell popular NFTs.

Solana’s transaction speed is also impressive compared to its rival Ethereum. SOL can support tens of thousands of transactions per second compared to only 13 transactions for Ethereum.

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