SOL cryptocurrency, which runs on the Solana blockchain, was one of the few coins to rise on June 8. However, at that time, the market witnessed another broad sell-off. The price of SOL rose by 8.52% during the day, with Bitcoin (BTC) falling by more than 0.2% and Ether (ETH) by 2.9%.
On June 9, the coin hovered around $43.31, with the SOL price recovering nearly 100% from its May 23 low, though it remains 25.7% below its all-time high of May 18.
What is the Solana project?
The Solana team is developing a high-speed competitor to Ethereum. The Solana Labs project was founded in 2017 by former engineers at Qualcomm (QCOM) and Dropbox (DBX). The Solana protocol and SOL token were introduced in April 2020. From now on, it should make cryptocurrency work more secure. The exchange of usdc on polygon and other cryptocurrency pairs will become as profitable as possible.
The Solana blockchain aims to challenge Ethereum as the basis for decentralized finance (DeFi), offering high transaction processing speeds and low fees. Solana processes more than 1,000 transactions per second, compared to just 14 transactions per second on the Ethereum network, as interactive data from Blockchain and Solana Beach show. According to the project’s website, Solana’s maximum theoretical throughput is 50,000 transactions per second.
Solana uses a hybrid protocol that combines a proof-of-history (PoH) algorithm with a proof-of-stake (PoS) consensus. PoS is more efficient and less energy-intensive than the original proof-of-work consensus, used in early blockchains such as Bitcoin.
There are already more than 250 projects in the Solana ecosystem. For example, Solanax announced this month would be an automated market maker (AMM) using Solana’s blockchain to provide fast, low-cost trading on a decentralized exchange. It is scheduled to go live in the first quarter of next year.
Forecast and long-term outlook
As the technical analysis from CoinCodex shows, the short-term sentiment on the SOL coin is bullish. The daily and weekly simple moving averages and the exponential moving averages indicate it is worth buying, while the Hull moving average signals a sell.
The Relative Strength Index (RSI) and the divergence/convergence moving averages (MACD), also popular indicators, produce neutral numbers.
Solana: support and resistance levels.
Digitalcoin’s Solana price forecast is also bullish. This service estimates that the average price will be $62.01 in 2021 and rise to $76.9 in 2022. Longer-term, it should increase to an average of $125.84 in 2025 and $185.24 in 2028. In December 2028, the average price should be around $200.6.
Does the SOL token have a future?
The future of the SOL token will depend on the project’s growing popularity as a blockchain for DeFi and other decentralized applications.
Can Solana (SOL) be considered a good investment
It all depends on your risk tolerance. It is essential to do your research to determine if they are suitable for your investment portfolio. Only after that can you exchange btc to sol. Try to assess all risks as much as possible before investing money.
Will the price of SOL Coin increase?
If algorithmic services’ opinion about Solana is to be believed, the forecast for 2021 and beyond is bullish, and the coin should potentially more than double in value if the current trend continues.
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