There are over 21 000 crypto assets in the market. So when you first think about crypto investment, you might get lost among that variety. The best recommendation from experienced investors is to pick coins with a large market capitalisation that are on the top-traded lists. Of course, the industry leaders are Bitcoin and Ethereum but look further, and you will see not less worthy projects that deserve your attention. For example, Solana.
What is Solana, and What is the Current SOL price?
Solana is the name of one of the most popular digital assets in all cryptocurrency rankings these days. Solana is a blockchain that enables the development and deployment of decentralized applications (blockchain games, NFT marketplaces, DeFi products, etc.). Solana is popular for the following reasons:
- It offers the highest network throughput (65,000 transactions per second).
- Minimal transaction fees (0.00025 USD per transaction).
- Staking of SOL coins.
These advantages mean that the Solana blockchain has the potential to gain popularity beyond the Ethereum network, and the SOL crypto price, therefore, has good growth prospects. The current Solana price is $14.67 (mid-December 2022).
The Solana blockchain is based on Proof-of-Stake, with elements of the Proof-of-History mechanism added to the consensus. Transactions are much faster and more efficient compared to the former Ethereum network. Staking is much cheaper than mining. It does not require sophisticated mining machines and equipment and consumes much less energy. Staking is, therefore, an environmentally friendly way to generate cryptocurrencies.
The Role of SOL Coins in the Network
As a crypto asset, Solana is used for transaction fees and executing smart contracts on the network. In addition, SOL coins are actively used for staking. Staking is blocking SOL coins on the Solana network with no possibility of exchange or sale. The more coins you block and the longer the blocking period, the more SOL coins you will eventually receive. Often, SOL stakers join together in pools to put more coins and thus share the higher profits.
Even though the SOL crypto price significantly dropped in 2022, it is still one of the most promising crypto assets for investment. Experts believe the Solana price will reach $67.14 in 2025. You can buy SOL on all large crypto platforms, such as Binance, WhiteBIT, Huobi and others.