There are two differences between paying gas charges on the coronavirus pandemic and the Ethereum blockchain. But the struggle to overcome both problems is the same. And that’s exactly where Solana comes in. In fact, the cryptocurrency billionaire Sambankman Fried was called Solana, the next big blockchain in 2022.
In particular, Solana promises to deliver the best Ethereum faster and at a lower cost. However, keep in mind that in 2021, meme coins such as Dogecoin and Shiba Inu also increased significantly. These coins received a lot of attention and coverage, but Solana was relatively well under radar.
See the price trajectory
Solana gained fame as an “Etherium Killer” in November 2021 when it rose from the cheap $ 1.5 to $ 230. At the time of writing, the coin was trading at $ 96.51. The bear seemed to be in control for now. If SOL can’t attract demand, the coin could drop to $ 86.54, which is another month’s support.
However, if the Bulls find a win, the tokens will be higher and they may face another resistance at $ 122. This is an area where SOL may see investors long long. However, $ 140 must be devoted to support for a continuous rally. The token can then move upwards and face a four-month resistance of $ 172.
In the attached chart, RSI and MACD endorsed the seller. Still, we cannot rule out integration in the presstime price range.
Really Ethereum Killer?
From the beginning, Solana has used the proof of stake consensus along with the proof of history while Ethereum is slowly transitioning to the proof of stake. In short, Solana is extremely fast and can process about 50,000 transactions per second at an average cost of $ 0.00025 per transaction.
In addition, Solana’s smart contracts are read-only and stateless. Currently, Solana has about 400 projects. Interestingly, there is a great community of investors and developers. In fact, the founders and employees are very loud and have a high percentage of interaction with SOL users.
This all means that developers are considering Solana because of its technical liking. For example, at the time of writing, the total value locked to Solana was $ 7.86 billion, with over 50 decentralized applications built on it. This is a sign that blockchain is very likely to grow and investors believe it.
Gas price concerns
The Ethereum network has tried to better scale every trick in the book, but gas prices are still a hurdle. This is one of the main reasons why many developers moved to the Solana blockchain in 2021. In fact, Ethereum’s average gas charge at the time of the press was 43 gwei, while Solana’s average gas charge was only $ 0.00025 per transaction.
Is everything going wrong?
Everything in Solana may look like a fairy tale, but it’s important to remember that Solana isn’t as decentralized as it should be. In fact, it’s very difficult to be a validator for the Solana network. Barriers to entry are very high. In addition, most coins are held in just a few accounts of founders, teams, and VCs. Surprisingly, the percentage of coins that the average person has is very small.
Remember that Solana does not have a clear roadmap. For this reason, long-term investors may consider considering a more skeptical project. For example, at the time of writing, development activities seemed a bit satisfying. For now, you can’t really expect a rally up to $ 200. Buyers of retail SOL can receive calls accordingly.