Insights

3 reasons why Solana could just be getting started

Lightning-fast transaction speed and an expanding ecosystem indicate Solana has a bright future.
The post 3 reasons why Solana could just be getting started appeared first on The Motley Fool Australia. –

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Solana (CRYPTO: SOL) has been on an amazing run this year, becoming the fourth largest cryptocurrency by market cap and recently surpassing older, more established blockchains like Cardano (CRYPTO: ADA) and Ripple (CRYPTO: XRP).

Moving forward, Solana could have even more runway ahead of it as momentum for the blockchain continues to build. Here are three reasons why Solana could just be getting started. 

Lightning fast transaction speed (at a fraction of the cost!)

The Solana network processes a remarkable 50,000 to 65,000 transactions per second, compared to just 15-30 transactions per second for Ethereum (CRYPTO: ETH), or 250 for Cardano. This throughput also compares favorably to traditional financial networks like Visa (NYSE: V), which processes about 24,000 transactions per second. Furthermore, Solana does this for a low fee of $0.00001 to $0.00025 cents per transaction, which is much cheaper than the current cost of transacting on the Ethereum blockchain. Transactions on the Ethereum blockchain cost anywhere from $4 to $20 per transaction in ‘gas fees,’ making it impractical for smaller transactions. While these fees are coming down after Ethereum’s move to proof of stake, Solana still has a distinct advantage here. 

Amazing projects are coming to the Solana blockchain

The advent of decentralized applications (dApps) like CryptoPunks, Crypto Kitties, and NBA Top Shot on the Ethereum blockchain helped turn Ethereum into a $500 billion asset. Developers flocked to the Ethereum blockchain to build new projects while artists minted NFTs, adding value and excitement in the process. 

Solana is developing a dynamic ecosystem of its own. One interesting project is Audius, a decentralized, blockchain-based music streaming service whose AUDIO token utilizes the Solana blockchain. The service has 5 million listeners as of 2021. 

There’s also Solend, a lending platform built on the Solana blockchain that will allow users to lend out tokens and generate yield.

Additionally, there is a burgeoning array of NFTs sprouting up on Solana, like the Degenerate Ape Academy, which has generated over $100 million in secondary sales since August.  As more users and developers take advantage of the Solana blockchain, its value will continue to rise. 

Hitting exit velocity 

We could be at the point where Solana has reached ‘exit velocity.’ 

Last year, a run from $10,000 to $20,000 seemed to make Bitcoin more risky based on valuation. However, this strong performance and larger market cap put it on the radar of institutional investors and hedge funds. This institutional interest helped propel Bitcoin from $20,000 to $60,000. While seemingly counterintuitive, growing to this larger market cap helped ‘derisk’ Bitcoin in the eyes of larger investors and made institutions and corporations feel safe dabbling in the asset. 

Now that Solana is approaching a $70 billion market cap, we are at a point where hedge funds, institutions, and other large investors and corporations may be comfortable investing in Solana, and propel it to the next level.

Looking ahead 

With unparalleled transaction speed for a fraction of a cent, a flurry of development and interesting projects being built on its blockchain, and the potential for growing institutional interest as it reaches exit velocity, Solana is here to stay. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 reasons why Solana could just be getting started appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

My first crypto buy: Solana

Did the Bitcoin and Ethereum bubble burst just signal a crypto market top?

Michael Byrne owns shares of Solana, Ethereum and Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!