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Solana blockchain is growing and everyone’s talking about it! But why?

January 24, 2022

Content

The cryptocurrency market is booming day by day with an enormous rise in new currencies. Solana blockchain is also growing every single day, marking a huge shift within one month. And now has reached its highest point with the 500% increase just within one month. Its price has now increased from $25 to $125.This is the main reason for its popularity and why people are talking about it.

A cryptocurrency is a form of digital tokens or “coins” that exist on a blockchain ledger. The market of cryptocurrencies has expanded dramatically since Bitcoin was launched, and the next great digital token may be released soon. Bitcoins continuously leading the herd of cryptocurrencies in terms of market capitalization, user base, and popularity. While other virtual currencies such as Ethereum are helping to create decentralized financial (Defi) systems.

What Are Cryptocurrencies?

Cryptocurrency is a digital currency or coin of blockchain development. A cryptocurrency is a virtual or digital money that takes the form of tokens or “coins.” Hence some of the cryptocurrencies have been used in the physical world with credit cards or other projects, but still, the large majority is not aware.

The “crypto” in cryptocurrencies refers to complicated cryptography that allows transactions across decentralized systems. There are also blockchain-based tokens that are used for several other purposes. Despite thousands of competitors that have grown up, Bitcoin the original cryptocurrency has still retained the dominant place in terms of usage and economic value.

WHAT IS SOLANA

Solana is one of the fastest-growing cryptocurrencies of blockchain gaining huge popularity in a short period of time. The key technical advantages here are the block speeds and low gas fees that will enable the Solana community to leverage the maximum benefit.

Solana has been ranked the top performer in 2021, going through the highs of blockchain to become the fourth-most-valuable cryptocurrency in the world. Solana is now valued at $64.2 billion, and its growing community of investors is excited about how Solana’s technology compares to market leaders Bitcoin (BTC) and Ethereum (ETH). It has the lowest per second transaction fee as compared to Ethereum. It all happened due to the use of new technology named “ proof of history.”

In this article, you will come to know the major factors behind the fluctuating values of the Solana blockchain.

EFFECTIVENESS OF SOLANA

Solana has been a tremendously rising blockchain cryptocurrency. Its biggest selling reason is its fastest and most cost-effective transaction way. It can operate thousands of transactions at the same time with minimum risk. The transaction cost of less than 1 cent per transaction denotes its cost-effective feature. It attracts more investors because it has the least number of users compared to Ethreum. If talking about its environmental impact then its fastest verification process is far less energy-intensive, potentially making the crypto a green alternative to Bitcoin and Ethereum.

SHORTCOMINGS OF SOLANA

Solana does not have a fixed number of coins which is causing a high inflation rate. The annual supply of Solana is increasing by 8%. Thus this factor is predicting the danger in its stability rate. Though it has the least environmental impact, it is fueling the societal challenges by giving rise to inflation. The more word of Solana’s speed and low fee structure spreads, the more new projects may choose Solana over Ethereum. However, it remains to be seen just how valuable Ethereum’s first-mover advantage is and whether or not Solana can build up its network of programs enough to truly compete with Ethereum.

GET STARTED

Hashlogics is known as the best blockchain development company Los Angeles. Offering an extensive range of blockchain services in the world of technology. We will help you grow in the world of blockchain cryptocurrency.

Author Bio

waqas
Copy Writer at Hashlogics

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