Solana has become one of the year’s best-performing digital coins. SOL has surged in popularity among new and past investors after gaining 17,500 percent this year alone and dubbed the ‘Ethereum Killer.
‘Solana’s price benefited from its capacity to outperform traditional cryptocurrencies like Bitcoin and Etheruem thanks to its underlying blockchain technology.
Furthermore, estimates indicate that Solana will break through her US $ 300 obstacle by the end of 2021, and may even reach the US $ 500 in 2022.
While there are a variety of factors driving increased investor interest in Solana, its price increase is solely due to its performance and new features.
This year, cryptocurrency topped the list, with a market capitalization of $ 70 billion, up from $ 1 billion in 2021. SOL, like Bitcoin’s supply limit and Ethereum’s newly added burn option, has an annual supply restriction.
Solana is an open-source platform for hosting decentralized and scalable apps that were founded in 2017. The blockchain was created by San Francisco-based Solana Labs and is managed by the Geneva-based Solana Foundation.
After reaching an all-time high in 2021, Solana’s cryptocurrency, SOL, grew in value and usage. Anatoly Yakovenko, a co-founder of Solana, issued a White Paper on the Concept of Proof of History (PoH), laying the groundwork for the SOL digital coin.
PoH is proof that is used to encode the passage of time without confidence in a ledger, and it is used to verify the sequence and passage of time between events.
Currently, there are approximately 302 million Solana coins in circulation. When the coin premiered, it started out by increasing its supply by 8% per year, but that number decreases by 15% each year until it finally hits 1.5% per year.
Even though Solana’s price has risen sharply, instead of just looking at recent gains, investors should look at its timing and check out the factors that could be causing its price to spike.