Investors are paying attention to a crypto token that has seen its price and market value rise quickly.
One blockchain network was hit especially hard by the fall of the FTX last winter, which got a lot of attention. People who use cryptocurrencies turned away from the Solana blockchain network, which had been praised for a long time by Sam Bankman-Fried, the controversial former CEO of FTX.
Today, though, Solana is doing much better after big technical updates and a bunch of new products. As of today, Solana’s market value has grown to $38 billion, according to CoinMarketCap. Bloomberg even called it “crypto’s next big thing.”
The price of solana has gone up by almost 800%. This is because the Solana network has lower fees and faster speeds, which has led to more deals on the platform.
A bull market is expected to last from 2024 to 2025, and many people think that Solana’s market cap will hit half of Ethereum’s. Richard Mico, U.S. CEO and global head of legal, risk, and compliance at Banxa, explained this. “Although the most conservative estimate puts the value of Solana at $250 during this time, it could go up even more if the crypto market cap hits $5 trillion as expected.” In this case, Solana could see a rise to $360 if it successfully gains a 3% share of the market.
Another one of Solana’s most well-known memecoins, BONK (or Bonk Inu), is also getting a lot of new attention. The memecoin was made as a joke at first, but according to CoinGecko data, its value has grown 400% this month and now stands at an amazing $1.2 billion.
But experts warn that both Solana’s and Bonk Inu’s price increases come with a lot of risk and uncertainty in the industry.
Strahinja Savic, head of data and analytics at FRNT Financial Inc., told Bloomberg, “There are all these risks that just aren’t shown to small investors who are looking for the next big thing.” “It’s more like gambling or playing a game than investing.”
“That bleeds over into crypto, which is really thought to be the riskiest asset class out there,” he said.
But there are some basic things about Solana that make it stand out in the crypto market.
“From a technological standpoint, Solana distinguishes itself with unparalleled throughput and transaction speed, compared to Ethereum’s perceived sluggishness despite its longer history and Metcalf’s law advantage,” Mico stated. “Upcoming releases and announcements, like Firedancer, are likely to strengthen Solana’s position even more, making it easier for people to use in the real world.” Overall, Solana’s recent rise is the result of a number of important reasons that not only solidify its position as a major cryptocurrency, but also make it stand out as a force in the constantly changing cryptocurrency world.
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