The price of the cryptocurrency Solana has fallen for the past two days in a row after the recent rally faded. SOL, the native token for the network, is currently priced at nearly $95, down about 60% from its all-time high. As a result, the total market capitalization is about $31 billion.
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Is it worth buying SOL now?
Solana is one of the fastest-growing blockchains in the world. It is said to help developers create high-quality apps for DeFi, crypto-credit Web 3, and NFTs that are both faster and more cost-effective.
At the moment, there are hundreds of apps based on Solana. The most well-known of these are Brave Browser, Audius, MetaPlex, and Grape Protocol.
The main advantage of Solana is that transactions with comparable applications within the Ethereum blockchain take longer and are associated with much higher fees. For example, Solana can process more than 2,000 transactions per second. That’s significantly more than Ethereum, which handles less than 20 transactions per second.
If you’ve ever used an Ethereum application, you know how expensive it is. On average, a transaction costs about $30, which is quite high. SOL transactions, on the other hand, cost less than $0.001.
Solana is also more environmentally friendly than Ethereum, as it is a proof-of-stake network
However, Solana has a number of challenges. For example, the SOL price is down today as investors react to a major hacking attack in one of its DeFi applications. According to Bloomberg, hackers managed to siphon over $320 million worth of coins from DeFi’s Wormhole protocol. Wormhole is a leading platform in Solana that serves as a bridge to other blockchain platforms such as Binance.
In my opinion, the SOL price reaction to the hack is unwarranted for two reasons. First, Solana is not responsible for the security of applications developed in its ecosystem. Second, DeFi projects of other chains such as Ethereum and Binance Smart Chain (BSC) have already been hacked.
Solana Price Forecast
In the four-hour chart, can be seen that the SOL price has been under a lot of pressure in recent months. On the way, the price even fell a few points below the moving averages of the last 25 and 50 days.
Moreover, it is between the rectangle pattern shown in red, while the MACD has formed a bearish crossover pattern. Therefore, there is a likelihood that the Solana price will continue to fall in the near future as concerns about the Federal Reserve remain.
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