The Solana price has been picking up in recent months as retail and institutional investors begin to appreciate the value of its unique protocol. The Solana network was launched in March 2020, and it has already solved the scalability problem that the Ethereum network is still grappling with in terms of speed and cost-effectiveness.
Because of the superiority of Solana’s network, its native token is gaining in popularity, and its price has increased by around 16% in the past 24 hours. At the time of writing, SOL was trading at around $43.00.
Solana price momentum is building
(Source: Trading view)
Looking at the chart above, it is clear that the token may be doing better than the other cryptocurrencies in recovering from the May meltdown. The coin has broken through near-term resistance levels and is the closest top altcoin towards regaining its ATH.
Solana price supported by unique protocol
Solana is seen as a good buy because of the demand for the network by DeFi developers who want to tap into the unique Proof-of-History (PoH) mechanism of the network.
The mechanism makes Solana highly competitive compared to the leading network for DeFi projects, Ethereum. However, Ethereum will only be a formidable opponent if it ever launches the Eth 2 upgrade.
The main reason why developers are running away from Ethereum is because of transaction lags. However, Solana aims at beating Ethereum by speeding up transaction processing speed to around 65,000 transactions per second, which is 4,000 times faster than Ethereum. Solana’s speed is also 2.5 times faster than the speed at which Visa processed financial transactions.
Developers are investing more in SOL tokens to start staking on the Solana network. This news makes it a suitable time for retail investors to purchase the token because of the high chance prices will shoot upwards.
Institutions investing in Solana – maybe you should too
Institutions have been investing in the Solana network because of its’ potential. Recently, OKEx and MXC exchanges raised $40 million to the Solana Foundation. The Block also recently reported that Solana is raising around $450 million from venture firms, although it provided no sources for its story.
In addition, the network is also gaining increasing institutional adoption with more dApps launching on the network. The number of DeFi projects on SOL is currently more than 50, which is expected to grow.
Solana has also not been left behind in the NFT craze. Recently Metaplex, an NFT marketplace, launched on Solana. Ethereum currently harbours the largest number of NFTs, but the high cost of the network may push this DeFi area into SOL.
Solana makes a great buy for short-term traders and long-term investors because of the amazing potential of the SOL network. Its success also seems to have been noticed by major crypto trading platforms such as Coinbase Pro, which launched it on the platform towards the end of May. This addition also helped Solana gain in value.
How to Buy Solana
The potential of price appreciation on the Solana network makes the token a great buy to all traders. To buy the token, one needs to go to a crypto exchange platform such as eToro.
eToro is a leading exchange, given that it provides friendly trading fees. Besides, it is one of the few exchanges that enable copy trading to allow new investors to increase their chances of making profits. Creating an account on eToro is easy and fast. After creating an account, deposit funds into it, and you can buy the desired number of eToro tokens.
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