Nowadays, many thousands of various cryptocurrencies are worldwide. So, it’s frequently hard for crypto investors to choose the most suitable one. Experts recommend such blockchain lovers put their money in some of the 30 most popular cryptocurrencies on the market. This is especially relevant for newbies. That’s because little-known cryptos are usually pretty difficult to predict. Thus, it’s necessary to have a certain experience to get profit trading such coins.
One of the most popular cryptocurrencies is considered Solana (or SOL). In March 2020, the first block of this crypto was created. And today, it’s the ninth token worldwide in terms of general capitalization. Those interested in SOL may find the current exchange rate of this cryptocurrency, for example, by applying the link https://cryptotracker.com/price/solana/. So, let’s learn about this crypto in more detail.
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What Should Be Known About Solana?
The crypto project’s concept was created in the USA. Software engineers from Intel, Dropbox, and Qualcomm developed it in 2017. They analyzed the Ethereum ecosystem, as this platform was the main competitor, as well as tried to create something more contemporary.
Eventually, the software engineers proposed a Proof-of-History algorithm. The latter excels in synchronizing time across blocks. Actually, Solana technically never sends a block. However, SOL developers use the term to describe the sequence of entries that validators vote on to achieve confirmation.
What Was Next?
Developers published Solana’s white paper in 2018. After that, they started to create a blockchain foundation. Then SOL founders:
- Held an ICO in the same year. This was after BTC fell by 80%. Initially, the SOL cost only 4 cents. But the successful marketing campaign convinced investors of the crypto project’s effectiveness. As a result, they bought about 80 million coins.
- Launched mainnet in 2020. This allowed third-party developers to deploy their ideas within the platform. Additionally, DeFi was extremely popular the same year. So, that ensured the influx of new external projects on the Solana blockchain.
- Uploaded the Yield Farming, Lending, and AMM platforms into the network in 2022. They integrated these tools to allow clients to arrange loans, perform money exchange, and hold ‘profitable farming’ instantly.
Such an algorithm implementation helped the Solana platform pretty quickly become a well-known blockchain system.
Main SOL Parameters
Experts count this cryptocurrency as reliable and secure. However, they recommend putting money in it considering the risk diversification rules. The key Solana features are:
- total cap – about $11 billion;
- 24h turnover – nearly $614 million;
- general supply – a little more than 508 mln coins;
- circulated number – almost 358 million tokens.
The SOL maximum price was about $260 per coin in November 2021. Nowadays, its value is much lower. But specialists expect Solana’s price will grow again soon. This makes Solana a great option to invest in.
What Strategy to Use, When Trading SOL?
One of the effective investment ideas is to put money in Solana in a growing market at the time of its reversal after another deep correction. That’s because the SOL price trend follows the general market trend, which BTC mainly sets. However, the Solana price range is larger than the same index of numerous top 30 cryptocurrencies.
Also, experts notice that SOL is more suitable for intraday swing trading. That’s due to Solana showing the greatest increase among the popular cryptos at the moment of local growth. For more information about SOL trading, dealers may visit specific online resources (e.g., CryptoTracker.com).