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.
If you want to find more details about Solana and why its price plummeted recently, download for free our companion app. The born2Invest mobile app brings you the latest financial news and market updates so you can stay informed.
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.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Hi-Tech Buoy to Clean Up the Seas Created by Jelter
Microplastic fragments range in size from 0.33 to 5 mm and can cause devastating consequences for entire ecosystems. They are...
f2o Sports Announced that Its Crowdfunding Campaign Has Started
f2o Sports is a global company founded in the heart of Silicon Valley, California, with the purpose of changing the...
After Obtaining Endorsement as a Fintech, Klu Will Seek to Become a Sofipo
In addition to seeking the acquisition of a Sofipo, Klu will also start operations with a company it recently acquired...
First Condominium of Tokenized Houses Launched in Brazil
The concept of including luxury homes in condominiums is not new, but the tokenization of multiple properties is. Viverde will...
Cannabis Legalization in Ukraine Delayed by Opposition Party
Opponents of the bill are using time-consuming legislative tactics to delay its passage. These actions include submitting hundreds of amendments...
Crowdfunding2 weeks ago
Ener2Crowd, Lending Crowdfunding Portal for Green Projects, Receives European Authorization
Crypto1 week ago
Binance: $4 Billion Fine to End US Legal Problems?
Biotech20 hours ago
Laboratorios Rubió Increases Sales by 40% in 2022 and Exceeds €100 million
Biotech2 weeks ago
Almirall Joins Forces with Absci to Develop New Treatments with Artificial Intelligence