What is the virtual currency SOL / Solana? Explaining features, future potential, and future expectations

Ethereum, a platform for building Dapps (decentralized apps) and smart contracts, is called the “King of Blockchain Development” due to the large amount of Dapps development.

Many blockchains have been developed to counter such Ethereum, but they have not yet destroyed their stronghold.

Under such circumstances, a new blockchain “Solana” was born in 2020, and it is expected to be one of the next “Ethereum killer”.

Despite the short period of about one and a half years from the launch, as of November 17, 2021, it has become a hot virtual currency, such as being ranked 5th in the market capitalization ranking.

In addition, on November 7, 2021, it reached a record high and is attracting a great deal of attention as the price continues to rise.

Therefore, this time, I will explain the features, future prospects, exchanges that can be purchased, etc. about Solana.What you can see from this article

  • Solana is a platform aimed at supporting various applications with high performance.
  • Solana is overwhelmingly faster and cheaper than many other blockchains
  • It has the potential to destroy Ethereum’s stronghold and has sufficient future potential.
  • If you invest in SOL, foreign exchange and coin check trying to establish both the domestic exchanges of account, such as

Solana is a very functional and promising project.

You can be traded on Binance.

table of contents

  1. What is the virtual currency Solana / SOL?
  2. Features of Solana / SOL
    1. Fast processing speed and low transaction costs
    2. Can be completed with layer 1 only
    3. Expected to be interoperable with other blockchains
    4. Can stake
    5. Partner is gorgeous
  3. Solana / SOL price changes so far
  4. Factors behind the soaring price of SOL
    1. Airdrop (free distribution of virtual currency) was done on Serum
    2. Tether (USDT) launched on Solana
    3. Launched NFT project
    4. Investment fever is increasing throughout the cryptocurrency market
  5. Future forecasts and outlooks for Solana / SOL
    1. Sushi Swap announces integration with DEX on Solana blockchain
    2. Many projects are underway on the Solana blockchain
  6. Should I buy Solana / SOL?
  7. Exchanges and ways to buy Solana / SOL
  8. First of all, purchase and remittance with coin check
  9. Summary of future forecasts and outlooks for Solana / SOL

What is the virtual currency Solana / SOL?

solana
Blockchain nameSolana
Currency (token) nameSOL
Ticker symbol / unitSOL
Market capitalization ranking (as of November 2021)5th place
Official sitehttps://solana.com/

Updated November 17, 2021

Solana is a blockchain platform that was launched in March 2020 (newly released) and aims to support a number of rapidly developing and using blockchain applications with high performance.

In addition, the key currency (token) handled on the Solana blockchain is called SOL.

The virtual currency SOL was just launched in March 2020, but the market capitalization ranking as of November 17, 2021 was 5th, and it has sunk into the top in just one and a half years, and attention and expectations for Solana / SOL You can see the height of.

Features of Solana / SOL

Solana / SOL has the following features.5 main features of Solana / SOL

  • Fast processing speed and low transaction costs
  • Can be completed with layer 1 only
  • It is expected to be interoperable with other blockchains.
  • Can stake
  • Partner is gorgeous

Fast processing speed and low transaction costs

Solana is characterized by its high performance, and its transaction processing speed and transaction cost are significantly superior to many blockchains.

For example, when compared with the major virtual currencies Bitcoin and Ethereum:

BlockchainTransaction processing count / secTransaction feeBlock generation speed
Solana50,000$ 0.000050.4 seconds
Bitcoin6-7$ 15600 seconds
Ethereum13-15$ 10-20300 seconds
Ripple4,000$ 0.00044 seconds

* These figures are not fixed but constantly changing, and are reference values ​​as of May 2021.

While Bitcoin and Ethereum have many users, they have long been struggling with scalability problems (transactions are increasing too much, processing delays and fee increases), and various solutions are available. However, the current situation is far from ideal.

On the other hand, Solana realizes high-speed processing and low processing cost that are unmatched by Bitcoin and Ethereum.

In addition, many blockchains that have overcome the shortcomings of Bitcoin and Ethereum, such as Ripple, have been made so far, but Solana exceeds those performances.

Can be completed with layer 1 only

In Ethereum etc., one of the solutions to the scalability problem is to take the method of “execution of transactions at layer 2”.What are Layer 1 and Layer 2?

Layer 1 refers to the blockchain and layer 2 refers to transactions outside the blockchain .

Bitcoin, Ethereum, etc. have scalability problems, and trying to trade and record with blockchain alone would cost too much time and fees.

Therefore, we are trying to solve the scalability problem by conducting a part of the transaction in layer 2 (outside the blockchain).

However, in the case of Solana, the transaction processing speed and block generation speed are very high and the cost is low, so processing can be completed only with layer 1, that is, the Solana blockchain.

Expected to be interoperable with other blockchains

Many blockchains so far, such as Bitcoin, have not been compatible with each other.

Therefore, Solana is planning to create interoperability in cooperation with other blockchains.

Already, Solana has announced a bridging feature with Ethereum called “Warmhole” in collaboration with startup “Certus One” .

Ethereum currently has scalability issues, so by connecting it to Solana, it will be possible to execute processing on Solana, which has a high processing speed and a low cost.

There are also moves to interoperate with Ethereum, the “king of blockchain development” on other blockchain platforms, but in the case of Solana, we are working to build a bridge function with blockchains other than Ethereum. ..

Can stake

Being able to stake is one of the attractions of Solana.What is staking?

Staking is a mechanism to receive rewards as compensation by holding the target virtual currency and participating in the blockchain network.

Until now, most virtual currencies have been mainly traded for the purpose of gains (capital gains) from buying and selling, but Solana also makes it possible to obtain staking rewards (income gains) from long-term holdings.

Partner is gorgeous

Solana is a fast, low cost blockchain platform that has partnered with over 100 projects that require its performance .

It’s also rapidly expanding the ecosystem, even though it’s only been released for about a year and a half.Major blockchains and applications affiliated with Solana

  • Serum (Distributed Exchange (DEX))
  • Chainlink (blockchain platform)
  • USDC (Stablecoin)
  • USDT (Stablecoin)
  • Arweave (a product that provides data storage)
  • Terra (stablecoin)
  • Akash Network (Distributed Marketplace)
  • Civic (wallet provider)
  • dFuse (project that provides blockchain API)
  • LoanSnap (mortgage lender)
  • Audius (a music project that has migrated from Ethereum)

Solana / SOL price changes so far

Image quote: TradingView

The image above is the SOL / USD chart from January 2021 to November 2021.

SOL was launched (newly released) in March 2020, and although there was no remarkable movement during 2020, it has skyrocketed in 2021.

The opening price in January 2021 was about $ 1.5, and the highest price in April was about $ 48.8, which means that it has swelled more than 32 times in just under four months .

The price has been rising and falling repeatedly since the price dropped sharply in the middle of May, but the price continued to rise steadily from the end of July, and in the end of August it was about 54 of the opening price in 2021. It has doubled.

On September 9, 2021, it reached a high of about $ 213.

Although it plunged temporarily after that, it showed a sharp rise again and reached a high again on November 7, 2021, trading at about $ 258.

Expectations are high for future price movements of SOL, which is showing a trend of rising prices.

Factors behind the soaring price of SOL

The soaring price of SOL that occurred in 2021 is thought to be due to the following factors.Four main factors that caused SOL to soar

  • Airdrop (free distribution of virtual currency) was done on Serum
  • Tether (USDT) launched on Solana
  • Launched NFT project
  • Investment fever is increasing throughout the cryptocurrency market

Airdrop (free distribution of virtual currency) was done on Serum

Serum is a decentralized exchange (DEX) that the cryptocurrency exchange FTX started operating on the Solana blockchain in August 2020.

Serum held a DeFi event in collaboration with Solana from February to March 2021, and distributed 2000 new virtual currency COPE to event participants for promotion free of charge .

In addition to COPE, new brands such as HOPE, ROPE, and KOPE have been launched on Solana in quick succession, which is believed to have led to the rise in SOL prices.

Tether (USDT) launched on Solana

In March 2021, one of the stablecoins, Tether (USDT), was launched on Solana.

As mentioned in the feature section, Solana has partnered with a number of projects other than tether, which has gradually become a reality and has led to price increases.

Launched NFT project

In August 2021, the blockchain “Solana” launched the NFT project “Degenerate Ape Academy” and entered the NFT.

The project was a hot topic, with 10,000 monkey image NFTs sold in the first 10 minutes.

You need SOL to buy NFTs for monkey images, and the large number of purchases has greatly increased the price of SOL.

In this way, it can be said that the price will be greatly affected by the recent launch of a topical NFT-related project.

Investment fever is increasing throughout the cryptocurrency market

Since the latter half of 2020, investment heat has increased in the entire virtual currency market, and not only SOL but also major stocks such as Bitcoin, DeFi related stocks, NFT related stocks, etc. It’s inside.

Such a bull market is driving SOL’s surge of more than 30 times since the beginning of the year.

Future forecasts and outlooks for Solana / SOL

Regarding the future outlook for SOL, we cannot predict how much it will grow, but it is expected that it may rise further in the future due to the following factors .Two important points fortune-telling the future of SOL

  • Sushi Swap announces integration with DEX on Solana blockchain
  • Many projects are underway on the Solana blockchain

Sushi Swap announces integration with DEX on Solana blockchain

SushiSwap is an  Ethereum- based” decentralized exchange (DEX) .

Since it is an Ethereum platform, I was suffering from soaring fees due to scalability issues.

So Sushi Swap announced in February 2021 that it would integrate with the Solana-based DEX “Raydium” to solve that problem.

In addition to Sushi Swap, Dapps (decentralized app) is also moving from Ethereum to Solana blockchain.

Ethereum has reigned as the “king of blockchain development” for a long time despite having scalability problems, and many blockchains called “Ethereum killer” have been developed so far, but by the time it breaks its stronghold It did not reach.

But this time, the overwhelmingly fast and cheap Solana may break through that situation.

Many projects are underway on the Solana blockchain

As mentioned in the feature section, Solana is currently working with more than 100 projects, many of which are not yet real.

They also include well-known crypto exchanges and blockchain platforms, and if the Solana ecosystem expands further in the future, demand will naturally increase and it will have a positive impact on the price of SOL. That’s right.

Should I buy Solana / SOL?

To summarize the explanation so far, Solana / SOL is

  • Despite the new currency launched in April 2020, it is in the top of the market capitalization ranking
  • Performance is considerably higher than conventional blockchains (faster processing speed and lower cost)
  • There is already a move to move from Ethereum in search of high performance of Solana.
  • We are working on projects with many famous places to expand the ecosystem and demand.

For these reasons, its future potential is very high.

Also, looking at the current price movements, it may seem that the price has risen too much, but in the long run, there is a good chance that the price will reach even higher due to its future potential.

If you read this article and find Solana / SOL attractive and potential, please try investing in SOL.

In addition, SOL has skyrocketed in such a short period of time, and in such situations, large downward adjustments are often made regardless of demand.

Therefore, if you want to buy SOL from now on, make a strategy so that you will not be disturbed even if it drops sharply in the short term.

Exchanges and ways to buy Solana / SOL

  • Binance
  • FTX
  • Huobi Global
  • OKEx
  • CoinEx and others
  • Decentralized Exchange (DEX)
  • Serum
  • Raydium and others

Summary of future forecasts and outlooks for Solana / SOL

This time, I explained about Solana / SOL.Summary of this article

  • Solana is a platform aimed at supporting various applications with high performance.
  • Solana is overwhelmingly faster and cheaper than many other blockchains
  • It has the potential to destroy Ethereum’s stronghold and has sufficient future potential.

Solana is a blockchain platform that boasts unrivaled processing speed and low cost.

We are also trying to achieve interoperability with other blockchains such as Ethereum, rather than being completed by Solana alone.

From such a thing, the future is very high, and it is ranked in the 10th place in the market capitalization ranking in one and a half years from the launch, and it can be seen that many investors are actually expecting.

It has continued to soar in 2021, but considering its future potential, there is a good chance that it will continue to grow in the future, so if you are interested, please try investing in Solana / SOL. Please give me.

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