Solana is a blockchain platform supporting high-performance decentralized applications (DApps) and marketplaces. Since its launch in 2020, Solana has garnered significant attention and popularity in the cryptocurrency market due to its fast transaction speeds, low transaction fees, and advanced smart contract capabilities. As a result, tracking Solana's price movements has become increasingly important for investors and traders looking to capitalize on the platform's growth potential. You can track Solana wallet easily with CoinStats.
What Is Solana (SOL)?
Solana (SOL) is a blockchain network that has the priority of providing its users with quick transactions as well as a high level of throughput, which is done through the implementation of a unique method of ordering transactions, where users can pay the transaction fees and interact with smart contracts through the usage of the native token SOL.
The Solana blockchain is essentially an improved method through which transactions are verified that resolves issues such as speed and scalability through the usage of a method known as Proof-of-History (PoH) which allows Solana to handle thousands of transactions per second.
Who Are the Founders of Solana (SOL)?
Anatoly Yakovenko is by far one of the biggest people behind Solana, where he started off working in Qualcomm and became a senior staff engineering manager in 2015. He entered a new position at Dropbox after that, and in 2017, Anatoly Yakovenko started working on a project that would over time be Solana. To do this, he needed the assistance of his former colleague at Qualcomm known as Greg Fitzgerald, where both of them founded the project known as Solana Labs. After they gathered the attention of a few more employees, the Solana protocol as well as the SOL token started getting developed, and were completed and released in 2020 for the very first time.
Solana Price History
Solana's price history has been marked by significant volatility. Since its launch in March 2020, SOL's price has undergone multiple price rallies and corrections. The cryptocurrency has experienced sharp increases and steep declines in price, reaching an all-time high of $258.39 in May 2021. Conversely, Solana's price experienced a significant decline in the 2021 bear market, dropping to a low of $22.57 in July.
Compared to other top cryptocurrencies, Solana has demonstrated a strong price performance. It was consistently ranked among the top 10 cryptocurrencies by market capitalization. Solana's price movements have been influenced by several factors, including market trends, investor sentiment, and the platform's technological advancements.
Solana's Price Performance Compared to Top Cryptocurrencies
Solana's price movements have stood out among other top cryptocurrencies such as Bitcoin, Ethereum, and Cardano. Despite being a relatively new platform, Solana has quickly gained market share and established itself as a major player in the cryptocurrency market.
Factors Influencing Solana Price
Among the key advantages of Solana is its significantly faster transaction speeds compared to major blockchain platforms. This has made Solana an attractive option for users and investors looking for a more efficient and scalable platform. Plus, Solana's low transaction fees have also contributed to its popularity.
Market trends and investor sentiment also play a significant role in Solana's price movements. As with other cryptocurrencies, Solana's price is subject to market volatility and is influenced by global events, regulatory changes, and shifts in investor sentiment.
Solana's Highest Price
Solana reached its highest price to date at $258.39 on May 18th, 2021. The price peak followed several months of strong price growth, driven by the platform's technological advantages, growing user base, and increasing institutional adoption. At the time, Solana's market capitalization exceeded $50 billion, making it one of the market's largest cryptocurrencies.
Overall, Solana's price movements are influenced by several factors, including market trends, investor sentiment, and the platform's technological advantages. As the cryptocurrency market continues to evolve, tracking Solana's price movements will remain crucial for investors and traders looking to capitalize on the platform's growth potential.
What Is Solana (SOL) Used For?
Solana is a third-generation, proof-of-stake (PoS) blockchain that has implemented a unique way through which it creates a trustless system that determines the time of a transaction and is dubbed proof-of-history (PoH). All of the events as well as the transactions that occur on the Solana blockchain are hashed through the usage of a hash function known as SHA256. This means that it takes an input and produces a unique output that is difficult to predict, and as such, Solana can take the output of a transaction and use it as the input for the following hash after it. The order of the transactions is inbuilt into the hashed output as a result.
The Solana team has developed eight technical features that help the blockchain match the capabilities of any other centralized system, and aside from the aforementioned proof-of-history (PoH), we have Tower BFT, which is a PoH-optimized version of practical byzantine fault tolerance, as well as Turbine which is a block propagation protocol. Then you have Gulf Stream which is a mempool-less transaction forwarding protocol, as well as Sealevel, which is a parallel contracts runtime. Then you have the addition of pipelining, which is a transaction processing unit when it comes to validation optimization, as well as cloudbreak, which is a horizontally-scaled accounts database, and finally, the archivers, which allows for the distributed ledger storage.
All of these features create a high-performance network that has 400ms block times and can operate thousands of transactions per second. When we compare it to the performance of other blockchains, Bitcoin's is 10 minutes, and Ethereum is 15 minutes.
Furthermore, any holder of the SOL token can stake their tokens as a part of the blockchain's PoS consensus mechanism, and they can stake their tokens with validators that process the network's transaction. When a validator does a successful job, he shares some of the rewards with those who have staked, and this reward mechanism then incentivizes validators as well as delegators that act in the network's interest.
Furthermore, SOL is the native cryptocurrency of Solana and has the role of being a utility token where users need to pay through the usage of the SOL token for transaction fees when they make transfers or interact with the contracts. The network then burns SOL as part of the deflationary model, and SOL holders can even become network validators.
SOL uses the SPLO protocol, which is the tokens standard of the Solana blockchain. SOL has two main use-cases, including paying for transaction fees and staking tokens as part of the PoS consensus. The Solana price is impacted by the Solana network, and it aids in delivering scalability. Berkeley packet filter designed a barkery packet filter and a large distributed ledger with fast streaming proof and stake consensus that allows for maximum throughput and history generator. It is a single chain that works without sacrificing decentralization while verifying the order and the information contained for fast execution. The former Qualcomm engineers have truly done it and the Solana price showcases this.
Where Can You Buy Solana (SOL)?
If you want to buy, sell or trade Solana (SOL), you can do so on the following exchanges: Binance Futures, Binance, OKEx, Bitrue, DigiFinex, and Coinbase Pro.
Our step-by-step guide on how to Buy Solana will help you get started!
premium
