Solana (SOL) price has seen a significant spike in recent weeks. On March 14, 2024, the price of SOL peaked at $174, the highest level since January 2022.
This is a gain of 52.74% in 30 days. Then, on March 18 2024, the SOL price again touched US$200, a figure it last reached in 2021.
What is Solana (SOL)?
Solana (SOL) is a blockchain platform designed to accommodate scalable, high performance decentralised applications (dApps).
Advantages of Solana
- Speed and Scalability: Compared to other blockchains such as Ethereum, Solana is known to have much higher transaction speeds and lower transaction fees. This is achieved through a combination of technical innovations, such as Proof of History (PoH) and Byzantine Fault Tolerance (BFT).
- Smart Contract: Solana supports smart contracts, making it possible to build various decentralized applications (dApps) on its platform. These dApps can include decentralized finance (DeFi), NFT marketplaces, and blockchain-based games.
- Energy Efficiency: Solana uses an energy-efficient Proof of Stake (PoS) mechanism, in contrast to the Proof of Work (PoW) used by Bitcoin and is considered energy intensive.
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Solana (SOL) Price Today
Based on data from CoinGecko, here are the prices of Solana (SOL) as of Monday March 18, 2024:
· Highest Price: $227.76
· Lowest Price: $194.83
· Closing Price: $201.08
Price changes
· Last 24 hours: +11.54%
· Last 7 days: +23.42%
· Last 30 days: +52.74%
· Trading Volume: $1,224,974,433
· Market Cap: $74,914,842,724
Driving Factors:
There are several factors that are believed to drive SOL price increases, including:
· Increased activity on the Solana network: The number of dApps (decentralized applications) built on Solana continues to increase, and this is attracting more users and investors.
· New product launching: The Solana Foundation launched several new products, such as Solana Pay and Solana Mobile Stack, that increase the utility and value of SOL.
· Positive market sentiment: The cryptocurrency market as a whole has been bullish in recent months, and this has also helped drive the price of SOL.
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Opportunity Analysis of Solana (SOL) Following the BNB token in Order of Crypto Market Capitalisation
Solana (SOL) has the potential to overtake Binance Coin (BNB) in order of crypto market capitalisation. As of March 18, 2024, SOL is ranked 5th with a total Market Cap of $89,381,808,924. Meanwhile, BNB is in 4th place with a total Market Cap of $89,444,691,872
Solana needs to continue increasing its adoption and utility, and BNB needs to maintain its utility and strong network.
Factors Favoring BNB
- High utility: BNB is used for a variety of purposes in the Binance ecosystem, such as trading fees, staking, and financing.
- Powerful Binance Network: Binance is the world's largest cryptocurrency exchange, and BNB benefits from Binance's extensive network and user base.
- Token burning: Binance regularly burns BNB, which reduces the number of tokens in circulation and increases their value.
Factors Favouring SOL
- Powerful technology: Solana has fast, scalable, and secure blockchain technology.
- Growing community: Solana has an active and growing community of developers and investors.
- Support from institutions: Solana has support from several large institutions, such as Alameda Research and Multicoin Capital.
Factors supporting the future of Solana (SOL)
- Powerful technology: Solana has fast, scalable and energy efficient blockchain technology. This makes it potentially an ideal platform for various decentralized applications (dApps).
- Growing community: Solana has an active and growing community of developers and investors. This strong community is important for Solana's long-term growth and development.
- Institutional Support: Several large institutions have expressed support for Solana, such as Alameda Research and Multicoin Capital. This support can help increase the adoption and value of SOL.
- Increased adoption: The more dApps, NFT projects, and blockchain games built on Solana, the greater the chance of success.
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