Solana (SOL) Price Prediction 2022 – 2023
Solana (SOL) was one of the networks and cryptocurrencies that ran the town in 2021.
The SOL network rose to fame quickly due to its unusually fast TPS (transaction per second) speed. As reported, while other networks can run only a few thousand transactions per second, Solana can verify almost 50,000 transactions every second.
However, Solana has seen its fair share of bad days throughout 2022 and may be ready for a change of perspective from the third quarter of 2022 until 2023.
What Is Solana?
Like Ethereum, Solana is a smart-contract-enabled platform. It was founded two years after Ethereum in 2017 and is currently run by the Solana Foundation, based in Geneva.
The Solana network is one of the fastest blockchains out there. It achieves its amazing feat of speed through a special proof of stake mechanism called "Proof of History," and another special mechanism called the Tower BFT mechanism.
Solana has an average of 1,900 validators, like most other blockchains. However, Solana does something different with its validator arrangement.
The Solana network has smaller clusters of about 150 validators at the center of it all, acting as "leaders" and responsible for processing transactions.
This form of "semi-centralization" enables Solana to retain its place as one of the fastest blockchains in terms of TPS, along with the likes of Fantom (25,000TPS), Cosmos (10,000 TPS), and Algorand (3000 TPS).
Solana rose quickly to fame in 2021, soaring in price to $260 in November 2021 and being ranked the 9th largest cryptocurrency with a market cap of about $66 billion. However, in 2022, Solana did not escape the crypto bloodbath that devastated the entire market.
The cryptocurrency has fallen in price to the $28 zone and ranks as the tenth largest by market cap.
Solana, over the year, has also suffered frequent outages and hacks that have reduced its investors' confidence.
Latest Solana News
Solana is one of those cryptocurrencies dubbed "Ethereum killers." This nickname on the network is understandable because Solana happens to have one of the best networks in terms of performance if one overlooks the frequent outages and hacks that plague the network.
However, Solana co-founder Anatoly Yakovenko has clarified that Solana is more of a "complimentary blockchain" than a "killer" to Ethereum.
According to Yakovenko, Ethereum focuses too much on the idea that validators must be extremely cheap. He adds that the developers are "sacrificing everything else" to achieve that and are even betting on the future of Ethereum's sharded network over the idea of cheap validators.
In Yakovenko's opinion, that is where decentralized networks optimized for consensus at the speed of light come in. He went further to say that there are use cases you can run on Solana that can't be run on Ethereum, and developers are more likely to choose Solana over Ethereum in these cases.
In other news, the creators of the Anchor development framework on SOL have begun the launching phase for "backpack," a first-of-its-kind wallet that supports executable NFTs.
So far, they have announced a strategic funding phase for $20 million, co-led by Jump Crypto, Anagram, K5 Global, and FTX, among others. According to Anchor's developers, these funds will be used to hire new talent to create a world-class development team.
SOL Price Analysis
From a long-term perspective, SOL appears bearish and seems to be in a multi-month consolidation since May 2020.
However, SOL has hit support around $25 it last tested in June and now appears largely bullish.
Depending on what happens next, SOL can bounce off the $25 support and trend toward the $48 zone, depending on how well the bulls defend this support.
However, if the bulls fail to protect this zone, the price of SOL may fall right through and reclaim a lower low.
This seems to be the deciding moment for SOL and may largely determine how it performs in terms of price over the next few weeks.
SOL Price Prediction 2022
SOL has fallen quite steeply in 2022. As devastating as this is, massive dips in cryptocurrencies are bullish signals.
The best time to buy is at a discount; as far as discounts go, SOL is a huge one. SOL has fallen to a low over 85% from its all-time high and may start to climb, especially after hitting the $25 support.
Solana Price Prediction 2023
From now until early 2023, SOL has a huge chance of reclaiming highs around the $150 zone, as illustrated above.
Considering how most analysts are bullish on the performance of crypto in 2023, SOL has a fair chance of reclaiming and even surpassing its $255 highs from 2023 until 2024
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