 ▲ Solana (SOL) |
Solana's SOL coin, a strong competitor to Ethereum (ETH), fell more than 6% in the past 24 hours and recovered to the $150 level.
SOL Coin, the 5th largest cryptocurrency in market capitalization, is trading at $153.31 as of 11:58 am on the 10th (Korean time), up 6.24% from 24 hours ago based on Coin Market Cap.
At the same time, Bitcoin (BTC), the leading cryptocurrency, is trading at $62,875, up 1.99%, and Ethereum, the second-largest coin by market cap, is trading at $3,030, up 1.09%.
On this day, US News said, “Solana, a cryptocurrency, has been receiving considerable attention recently and is evaluated as the fourth most valuable cryptocurrency,” and mentioned three advantages and three disadvantages to consider before investing.
According to the media, Solana's advantage is its fast transaction speed and low fees, making it an attractive option for NFT enthusiasts and dApp users. In particular, it provides fast transaction speeds and low fees in the NFT field and hosts 260 DApps, providing growth potential in the smart contract and NFT fields. Additionally, Solana's proof-of-stake (PoS) and proof-of-history (PoH) models are less energy-intensive than Bitcoin's proof-of-work (PoW) model, making them environmentally friendly.
Conversely, Solana's disadvantage is that it has a smaller number of users and a shorter history compared to Ethereum, so it may lack network stability. Additionally, with a much smaller number of projects than Ethereum, Solana's fast speed and low fees can attract new projects, but its small ecosystem still remains a limitation. Additionally, unlike cryptocurrencies that have a hard cap (limitation of total coin supply), Solana has an inflation rate that starts at 8% per year and gradually decreases, which can be disadvantageous for investors looking for a refuge from inflation.
Meanwhile, Franklin Templeton, an American investment banking firm, said in a recent report, “Solana established itself as a major coin last year after surviving the collapse of the FTX exchange in late 2022. Considering Solana’s remarkable resilience and current position, SOL is expected to support BTC, “It is expected to become the third largest coin after ETH,” he predicted.
“In particular, in the fourth quarter of last year, the Solana network became active as airdrops of major Solana-based projects continued. Through this, Solana is estimated to have achieved an economic effect worth $1 billion. This phenomenon is expected to continue for a considerable period of time. “It will,” he said, adding strength to his optimism.
