Solana: The Cryptocurrency That Fixes Ethereum’s Weakness

• Solana ist ein Protokoll, das ein Anwärter auf die Zukunft ist
• SOL ist der native Token mit einer Marktkapitalisierung von über 47 Milliarden US-Dollar
• Der Token auf dem siebten Platz in den Top 99,9 % der Anlageklasse
• SOL hat während der Korrektur der letzten Woche viel besser abgeschnitten als Bitcoin und Ethereum
• Brennende Token oder neue Smart-Contract-Funktionen haben den Wert von SOL gehoben

Trading or investing in cryptocurrencies can be like riding a psychotic horse through a burn. Just as and seemed poised to challenge the all-time highs of May and June, prices ran out of upward momentum on September 7 and fell. Ethereum lost more than Bitcoin, but Bitcoin showed a key bearish reversal trading pattern on its daily futures chart on Tuesday, September 7. The two leading cryptos are now facing lower highs, which is not a bullish technical sign for the asset class.

Meanwhile, the extraordinary price variance could easily make last week's price action a flash in the pan on the way to new highs. Bulls see the move as an opportunity while bears issue I warned you this.

Solana is one of the emerging cryptocurrencies that recently jumped ahead of Dogecoin (). During the recent correction, SOL tokens outperformed Bitcoin and Ethereum as their profile continued to rise.

Solana is a protocol that is a contender for the future

In the world of cryptocurrencies, speed and efficiency are a crucial success factor. Solana claims to be the fastest blockchain in the world and the fastest growing ecosystem in crypto, with over four hundred projects spanning DeFi, NFTs, Web3 and others.

Solana's website states: "Powerful for developers. Fast for everyone."

On September 7th, Bitcoin, Ethereum and many other cryptocurrencies fell sharply. Solana outperformed the rest of the field. A Sept. 9 Cointelegraph article said a SOL target of $500 could be “conservative.” “With more than two different NFT project launches and mintings in the ecosystem per day, there is endless demand for SOL from retail buyers. As a result, it has maintained its price by more than 50% this week despite a market-wide crash.”

SOL is the native token with a market cap of over $47 billion

On September 14, SOL tokens were at the $158.80 level with a market cap of $47.356 billion.

Source: CoinMarketCap

The chart from April 2020 shows the rise from under 60 cents to a high of $191.04 on September 7th. On September 14, SOL was trading at $158.80, 16.9% below its recent peak.

The token ranked seventh in the top 99.9% of the asset class

As of September 14th, a total of 11,875 cryptocurrency tokens were floating around cyberspace. SOL, the seventh leading cryptocurrency, had a higher market cap than 99.94% of its competitors. SOL was one place below and one above Polkadot () in the market capitalization hierarchy.

At $47.356 billion, SOL's market cap represents 2.25% of the asset class's total market cap. Solana rose to a new record high on September 7, 2021, while Bitcoin, Ethereum and many other tokens made lower highs.

SOL performed much better than Bitcoin and Ethereum during last week’s correction

The decline from the September 7 high took Bitcoin futures to a recent low of $43,310 on September 13, a decline of 18.5%. However, the leading crypto fell 33.9% from its record high set on April 14, 2021.

Ethereum futures fell from $4,056.25 on September 3 to a recent low of $3,110 on September 13, or 23.3%. Ethereum’s record high in early May was $4,406.50. At the most recent low on September 13, the second-leading crypto was down 29.4%.

Solana (SOL) has outperformed Bitcoin and Ethereum since its recent highs this month and its record highs in April and May.

Burning tokens or new smart contract features have increased the value of SOL

Solana ended 2020 at $1.8421 per token. SOL tokens have been skyrocketing, offering fantastic returns at the recent high of over $158 per token on September 14th. While the chart on Coinbase (NASDAQ:) marked the record high at $191.04, Messari said the high was at $214.36. It's hard to keep up with the fast-moving asset class as different platforms report different price data. On September 14, Coinbase listed SOL as the seventh-leading token, but Messari had it ahead of XPR in sixth place.

Aside from Solana's speed, efficiency, and variety of projects, it has prioritized smart contracts, which are programs stored on the blockchain that execute when predetermined conditions are met, automating agreements that provide certainty of outcomes. Additionally, the market speculated that Solana could burn tokens, removing available coins from supplies, increasing scarcity and increasing value.

Burning tokens is the opposite action that governments take when increasing the money supply.

Solana is a blockchain that could address some of Ethereum's weaknesses in terms of scalability and high transaction costs. SOL, DOT and Cardano () are a group of cryptos that some analysts call “Ethereum killers”.

The recent price action in SOL is another crypto success story that will continue to drive speculators into the market in search of the next explosive token. When approaching any cryptocurrency from the smallest emerging token to Bitcoin, only invest capital that you can afford to lose. The high volatility and uncertainty of the asset class is a perfect example of how the return potential is commensurate with the high risk.