- Stagnating Solana Prices
- Why Solana Stands out From Other Cryptocurrencies
According to Whale Alert, a crypto tracking platform, a significant transfer of 7,981,571 Solana (SOL) valued at (worth $184,488,088) has been detected between wallets in the past hours during the day. However, more is needed to know about the shifting of the SOL, as many factors might have led to this massive traffic, such as whale buying, wallet reshuffling, or exchanges.
Stagnating Solana Prices
SOL’s prices have remained steady recently, reflecting mixed reactions on the broader cryptocurrency market. Solana has experienced a 110% resurgence in value due to improved investor confidence after the end of 2022, marked by various disasters and the aftermath of the FTX collapse.
In November 2021, Solana traded at $260 per token, but the prices fell after the FTX scandal. At the time of this report, SOL has seen a slight increase in the last 24 hours, trading at 23.20$. However, Solana’s price has been limited to $25.6 to $22.9 and has been unable to sustain its early January bullish trend; its support level is $22.77.
Why Solana Stands Out from Other Cryptocurrencies
Solana is one of the most volatile cryptocurrencies and one of the fastest crypto (SOL -1.67%). By comparison, Bitcoin’s (BTC -0.61%) processing capability limits seven transactions per second, and it can take up to 60 minutes to finalize a new block of data in its network.
The fast speed may be because Solana’s engineering team, composed of former mobile network engineers, is optimized for large-scale extensible and efficient resource utilization. Solana uses a proof-of-stake network explicitly designed for it and has a different system, such as Proof of History, Tower BFT, and Sealevel.
Currently, the system can validate up to 5,000 transactions per second, expecting to reach 700,000 TPS in the future. Solana’s blockchain adds a block of new information every 400 milliseconds, which is more frequent than twice per second.
Solana seems the perfect platform for blockchain applications that necessitate quick transactions. Initially designed for decentralized finance (DeFi) applications, its system of rapid transactions and advanced intelligent contracts could also be suitable for metaverse exploration or real-time gaming.
However, Solana’s high-speed transactions have several drawbacks. Working with its complex consensus method may take much work for new developers. Solana is also said to be energy efficient compared to other cryptos since it has a unique consensus algorithm mentioned above called Proof of History which minimizes energy consumption.
In addition, tower BFT, based on the Practical Byzantine Fault Tolerance (PBFT), aids in providing high-security levels and decentralization. All these features distinguish Solana from other cryptocurrencies, thus making it a good platform for financial services and decentralized applications (dApps).