The latest FTX exchange turbulence and the collapse of the FTT currency affected the entire cryptocurrency market, but Solana was the hardest hit. Solana’s TVL plummeted from over $620 million on November 9 to less than $342 million on November 13. In terms of total market capitalization, Solana has lost half of its value in the last 7 days. Why is Solana blocking?
- Solana is backed by Alameda and is the 2nd largest estate in Alameda.
Sam Bankman-Fried, former CEO of FTX, runs Alameda.
- Alameda’s balance sheet showed that the company held $292 million SOL unlocked, $863 million SOL locked and $41 million in SOL guarantees, this represents about 10% of SOL’s market.
- 31 million Solana tokens have been wagered. Meanwhile, trading volumes have fluctuated between $6 billion and $2 billion over the past 5 days.
Solana’s connections with FTX
Alameda’s balance sheet shows the Solana assets it holds, but the Solana Foundation also holds huge assets on FTX and Bankman-Fried related companies. The Solana Foundation has published details of its financial link with Bankman-Fried’s companies.
According to the report, the Solana Foundation said it had about $1 million in cash or cash equivalent as of FTX.com as of 6/11/22. The amount is less than 1% of the total cash or cash equivalent of the Solana Foundation.
Solana Foundation has 3.24 million shares of FTX Trading LTD. Solana Foundation holds 3.43 million FTT tokens and 134.54 million SRM tokens from the decentralized exchange (DEX), Project Serum which is a Solana-based DEX founded by Bankman-Fried.
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Will Mr Solana recover?
Solana has been the worst performing cryptocurrency compared to Cardano and Ethereum performance this year. Over the past 2 months, Ethereum has made some progress, but for Solana, there has been almost no change in outlook.
Without further innovations to help consumers and businesses, Ethereum’s blockchain ecosystem including Ethereum, Polygon, Uniswap, and ImmutableX will continue to grow faster than Solana or Cardano.
Solana’s only hope is an improvement in the broader macroeconomic framework that increases liquidity, and even Solana would get a share only for better risk management.
Solana’s main problem was that he witnessed huge crashes not only due to deteriorating market conditions, but also because of the network outrages themselves.
Solana’s price has fallen below $20 and now Solana’s overall market capitalization has fallen below Shiba Inu. Solan has recovered marginally and now its market capitalization is again higher than that of Shiba Inu.
Solana is now ranked 13th in total market capitalization. He ranked 8th on November 7.
Is Solana a good investment?
The Solana platform delivers excellent performance without layer-2 or off-chain solutions. Solana’s Proof of History is its key distinguishing feature, giving it the highest throughput among Layer-1 chains. Solana’s hybrid consensus method exchanges decentralization for speed. Solana’s creative integration of PoS and PoH is a revolutionary concept in the blockchain space. Similar to Ethereum, Solana has built its own Layer 1 solution for NFT and is one of the fastest growing ecosystems.
- Faster than Ethereum: Solana’s blockchain is the fastest in the world and has been recognized as such by the industry. It is currently delivering at 2600 transactions per second with a finalization time of four seconds.
- Low fee: Solana differs from all these other projects because it uses a consensus algorithm called Proof of History (PoH). Unlike traditional Proof-of-Work (PoW) algorithms, PoH does not require an expensive mining process; Instead, it relies on verifiable mathematical proofs instead of computational power. This means that there will be no mining fees on the network and transaction costs will be scarce.
- NFT and smart contracts: Solana has entered the NFT market and is ready to share its NFT option. Solana looked at non-fungible tokens and smart contracts as a way to expand their business, but they want to make sure they get it right. The NFT industry has been on the loose in the last year and many companies are jumping on board.
- Non-fungible tokens have become a high-growth industry opportunity followed by epic sales hosted by eminent digital artists. Taking advantage of this expanding sector, Solana entered the market to share the NFT option with everyone.
- Solana is a leader in the derivatives market: Solana has an incredible business in its on-chain data and derivatives market. The network’s TVL has increased by more than 15% in the last six months. It seems to bridge the gap between TVL, active users and the derivatives market.
NFT: According to Cryptoslam, NFT sales on Solana’s blockchain fell from $311 million in April 2022 to $68 million in October 2022. Ethereum was also struggling with sales on the Ethereum blockchain after falling $3.3 billion in April to $324 million in August. The transaction on ImmutableX which is on Ethereum dropped from $35 million to $23 million. Cardano also gained momentum in October.
DeFi: According to DeFiLlama, DeFi TVL on the Solana blockchain at $330 million, dropped from nearly $5 billion in April. In the case of Ethereum, TVL fell from nearly $60 billion in April to $25 billion in November.
Other trades: Very few tokens are hosted on Solana compared to Ethereum, meaning that ETH has started to recover as trading volumes have increased on tokens such as Shiba Inu and Matic that are linked to Ethereum.
Overall, Solana has done a reasonable job on NFTs but not so on DeFi. On NFTs, Cardano was during and ImmutableX narrowed the gap. Overall momentum is negative.
Solana Price Forecast 2023-2030
Solana Price Prediction 2023
Solana 2023 price prediction is $28.3
Solana Crypto Prediction 2025
Solana Crypto’s forecast for 2025 is $53.5.
Solana Price Forecast 2030: Solana’s future in 2030?
There will be a massive transformation in the financial sector by 2030. We may see digital currencies or digital payment methods replace traditional payment methods in the near future.
The financial sector has undergone significant changes since the COVID-19 pandemic. As a result of the recent Ukraine-Russia war, which led to Russia being excluded from SWIFT’s payment solution, more alternative methods of global payment solutions have become available. Cash can no longer be used for payment and payment without borders will be completed in much less time than it does now.
Talking about Solana’s future will more likely depend on the NFT market than on the payments sector. As blockchain technology evolves, the value of a token will more likely depend on the expansion of its blockchain network. Solana is more concerned about being the best NFT platform. According to one estimate, more than 200,000 people buy and sell NFTs every month. The current NFT market stands at $20.44 billion and is expected to increase 10-fold by 2030 bringing the valuation to $211.74 billion in 2030.
Solana’s market share of total NFT trading volume has increased from 7% to 24% according to Delphi Digital. In January 2022, JPMorgan published a report that Ethereum, which has the largest share in the NFT world, is losing its market share to Solana.
Now, considering that market conditions will improve in the coming months and the NFT market will rise higher, we can say that Solana’s future is very glamorous and, in turn, this will help the price of SOL tokens to rise.
Considering the SOL Price 2030
forecast from multiple platforms and taking the average of it, Solana Price Prediction 2030 is $265.7.
Solana Price Forecast 2040
For 2040, Solana’s price forecast is $3922. To achieve this, Mr Solana must earn at least 30% per year.
Will Mr Solana reach 1000?
Solana will reach $1,000 in just 16 years if it rises to a conservative 25% each year. However, as we saw with Solana in 2021 and Ethereum between 2016 and 2021 and Bitcoin between 2010 and 2021, exponential growth cannot be ruled out. For example, Solana only needs to climb 32 times to reach the goal. It increased 100-fold in 2021. Bitcoin and Ethereum have risen at a much faster rate despite their size.
So growth expectations are not unreasonable. However, Solana has formidable competitors in the form of Ethereum, Cardano and even Polygon. Gaining share in the future, when growth is much lower than today, will be a huge challenge. We believe that 16 years is too long in the future to make a cryptocurrency investment decision. Much more because of Solana’s lack of competitiveness compared to Ethereum.
Solana Forecast Price $1000
In theory, a price of $1000 is highly feasible, but given the current market and the intensity of competition, we believe an investor should not look at investing in Solana from too long-term a perspective. Perhaps a 2-3 year horizon is more predictable and will offer healthy returns.
What is Solana?
Solana is a blockchain platform that supports smart contracts, including NFTs. It was created as a competitor to the Ethereum blockchain network. Since it is known that most cryptocurrency projects are based on the Ethereum blockchain, the Solana blockchain serves as an alternative to it. One of the popular cryptocurrencies based on the Solana blockchain network is Stepn. Here are some facts about Solana:
- Solana is a public blockchain network with built-in smart contract capabilities.
- SOL is the native token of the Solana blockchain network.
- Solana was first proposed by Anatoly Yakovenko in November 2017.
- The first block of Solana was created on March 16, 2020.
- Solana uses a consensus mechanism between the test of the stake and the test of history.
Why is Solana fighting against Ethereum?
Solana has been considered the “Ethereum killer”, but the reality remains beyond it. The best bet for Solana’s blockchain was its speed, but beyond that Solana failed to compete with Ethereum.
- To differentiate itself, each blockchain network has sought to occupy a particular market, Solana has portrayed himself as one of the biggest NFT players. However, he is far behind Ehterum even in the field of NFT. Over 90% of NFTs were created as ERC-721 tokens on the Ethereum network.
- built its own Layer 1 solution for NFT and is one of the fastest growing ecosystems, but compared to Ethereum, Solana remains a minor player in the NFT world.
- One of Solana’s advantages over Ethereum was that the Soalan blockchain was more environmentally friendly. However, with Ethereum Merge, the ETH blockchain will move from a proof-of-work model to an environmentally friendly proof-of-stake ecosystem.
Similar to Ethereum, Solana
Solana Prediction: How to Buy Solana?
Solana can be purchased in many ways.
(A). Use your currency (dollars, pounds, etc.) to buy Solana on any of the cryptocurrency exchanges – Coinbase, FTX, Binance etc
(B). Use your existing cryptocurrency wallet and a DEX to exchange your cryptocurrency for another cryptocurrency
If you want to buy from a cryptocurrency exchange, the process is quite simple
- Create an account with Coinbase, Binance, FTX, Crypto.com, Kraken etc. This will require basic documentation that guarantees KYC so that these exchanges are not used for money laundering. Larger exchanges tend to have a higher fee, while smaller ones tend to reduce fees, but are considered less secure.
- Each of these exchanges has various features and transaction fees. So evaluate them carefully.
- Add a payment method (bank account, debit or credit card, bank transfer) and then fund the account
- Start trading by selecting the SOL trading symbol and enter the quantity
- On Binance, you can use the peer to peer method to buy from other users
- You can store your cryptocurrencies in the trading account or in your personal wallet (you need to open another account for this)