As demand for Ethereum, the most used blockchain network, has surged this year, projects like Solana have emerged in an attempt to compete.
As demand for Ethereum, the most used blockchain network, has surged this year, other projects have emerged in an attempt to compete. Among them is Solana, a blockchain with a native cryptocurrency called SOL.
The overall market has shown support for Solana, too. This year, SOL is up nearly 17,000%, according to CoinGecko. Now the fifth-largest cryptocurrency by market value, SOL hit an all-time high of nearly $250 on Thursday, and currently, it has a market cap of over $70 billion.
Solana price is likely to give traders who missed the most recent advance a second opportunity to enter. The recent price drop was expected, especially given the significant gaps between the Thursday and Friday candlesticks and the Tenkan-Sen. One anomalous behavior within the Ichimoku Kinko Hyo system is how price action responds to gaps between the candlesticks and the Tenkan-Sen. Gaps are not tolerated for long in Ichimoku, and there is often a return to equilibrium within a few periods.
Solana, a so-called “Ethereum killer,” allows developers to rapidly experiment and deploy apps using composable building blocks. This level of composability isn’t possible on Ethereum without having to deal with additional friction caused by layer-2 scaling or sharding solutions. We’ll explore the main advantages and disadvantages of the Solana ecosystem below.
Solana, in particular, has its own risks. First, it has appreciated substantially in a short period of time. Just like with other cryptocurrencies, the potential for large price swings should be considered and understood before investing. As quickly as it reaches a new high, it could go back down.
The rising instances of adoption of digital tokens by banks, launch of bitcoin-futures-base exchange-traded funds (ETFs), and growth of non-fungible tokens on virtual gaming platforms, have seen several cryptocurrencies, including Bitcoin and Ethereum, rise higher since the month of October.