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Is Solana a good investment?

Solana
TL;DR Breakdown
  • Solana’s position, according to CoinMarketCap, demonstrates how much potential there is in this coin.
  • Solana NFT marketplace is also expected to expand, especially after listing on Opensea.

Solana is a decentralized crypto computing platform that has been growing rapidly in the past few months. The blockchain network powered by its native token, $SOL, has been on a path to becoming one of the world’s most respected and powerful blockchain platforms.

If you’ve been following the news, you know that Solana has been making major developments in its DeFi platform. What’s more, they’ve shown remarkable growth since their ICO and have been listed on Opensea.com as well. 

So the blockchain network might be a good choice if you want to make an investment. In addition, many developers prefer Solana to Ethereum for creating dApps and NFTs since it’s an open-source project with a very fast layer-1 blockchain.

Solana aims to provide the world with an alternative to centralized cloud computing. It uses sharding, which makes it scalable and performant without a central authority. As a result, the network offers high-performance blockchain transactions at ultra-low costs. It’s also one of the most advanced programmable blockchains out there, competing with other major players like Ethereum and Cardano in terms of power and functionality.

However, one thing that sets Solana apart from its competitors is its focus on speed. As a result, the platform has shown remarkable growth over the past year. The market cap is over 300% since it launched its mainnet in April 2019.

Solana’s major developments

Solana is currently ranked as the 9th biggest crypto asset in terms of market capitalization. The network’s team has been working on delivering some of the most exciting development that will explode the $SOL price

According to CoinMarketCap, Solana has shown remarkable growth in market cap and trading volume since December last year. This is a good sign for investors looking to invest in this project.

Solana’s major development so far has been the launch of its DeFi, which allows users to create their own decentralized financial applications on its platform. It is expected that it will help drive up the value of $SOL tokens in the long term.

The Solana NFT marketplace has a bright future after listing on Opensea. This marketplace allows users to buy and sell digital assets using $SOL tokens instead of fiat currencies such as USD or EURO. It’s likely that this will increase demand for $SOL tokens over time because more people will have access to them through this platform.

The Solana team is working on delivering more updates that will likely take the coin’s value even higher, so now might be a good time to invest before things start getting crazy!

Solana ranks low on the DeFiSafety technical risk score

Solana has often been referred to as an “Ethereum killer”. However, the blockchain network has not been able to live up to that claim. It has suffered a couple of outages or service disruptions since the beginning of this year and several in 2021.

Its latest outage occurred a few weeks ago when a bug prevented consensus achievement, which affected block production. DeFiSafety, a platform that provides process quality reviews (PQRs) in DeFi and cryptos, recently released a new technical risk score report.

The independent rating organization ranks Solana second-last of the 15 chains it reviewed, owing to several downtimes. Other reasons include poor handling of archival node information, poorly designed block explorers, and unaudited node clients (software) with less diversity than competing blockchains. The chain only ranked above the Ronin Network.

DeFiSafety’s Protocol pointed out several concerns that led to the position of the blockchain network. First, the platform bemoaned its subpar network infra despite having proper documentation. 

The DeFi Watchdog noted that it remains undefined where chain history for the network is stored, owing to a lack of updates of the Solar bridge after archives were abandoned in 2021. Still, many experts believe that the coin’s value will increase, and this is the time to invest.

Nellius Irene

Nellius Irene

Nellius Irene is a cryptocurrency investor and journalist who has been in the nascent space since 2018. She has researched and written on several crypto-related topics including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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