Is Now a Good Time to Buy Solana (SOL)? • 2023 Breakdown • Benzinga

Already decided now is a good time to buy Solana (SOL)? You can buy SOL on Coinmama, Uphold, Gemini and more exchanges listed below.

As cryptocurrency continues to become more prevalent, its growth has introduced scalability challenges for blockchain platforms like Ethereum. The increase in popularity causes high transaction fees and limits the number of transactions per second (TPS), which has impeded the progress of the blockchain. 

Anatoly Yakovenko recognized these challenges and proposed the idea of Solana in 2017; in 2020, the high-performance blockchain Solana was launched. It maintains low transaction fees and high TPS through a unique proof-of-history (PoH) consensus mechanism algorithm, which uses timestamps to define the next block on the blockchain. However, Solana’s high throughput comes at the cost of decentralization. Its network is secured by only a handful of nodes, whereas Ethereum and other competitors offer better run times, stronger security and decentralization.

Solana’s token SOL is used to pay transaction fees and take part in governance on the platform. Solana has attracted a lot of attention from developers and projects in the blockchain sector, but given that FTX’s sister investment firm Alameda Research funded many of these projects, Solana’s ecosystem took a major hit following the FTX insolvency.

TL;DR: Is Now a Good Time to Buy Solana?

Solana has experienced its fair share of price fluctuations since it was first launched in 2020. SOL reached an all-time high of around $260 per coin in 2022. Its success was largely attributed to the general speculation during the bull run and the adoption of the token.

Following the peak of the crypto market at the end of 2021, the price of SOL saw a sharp drop in August 2022. The blockchain platform faced a hack, which resulted in SOL tokens being drained from users’ wallets. Despite the setbacks, the general trend has been upward, with the price of SOL slowly recovering from its low of below $10.

Despite the fluctuations that occurred with SOL, it has managed to establish itself as one of the largest cryptocurrencies on the market today because of its high transaction throughput and partnerships with major companies and projects. Now might be a great time to buy Solana because it is far below its all-time highs but is also holding above important support levels. 

How Long Will the Crypto Bear Market Last?

While cryptocurrency prices are down across the board, it’s important to consider that the market has been on a downward trend for over a year. Many investors believe the market hit local lows, as most leverage has left the sector following exchange insolvencies. It may take until after the Bitcoin halving in 2024 for token prices to return to all-time highs.

Using investing techniques such as dollar cost averaging and diversification can help with making better investment decisions and potentially achieve long-term profitability. These techniques can help manage the emotional rollercoaster of the market. 

Will Solana Ever Reach All-Time Highs Again? 

Solana’s high of over $250 means the token will need to appreciate around 1,000% to return to all-time highs. While this is no easy feat, the volatile crypto markets make all-time highs a possibility. Key factors could potentially drive the market cap of Solana higher.

Adoption and usage: The more businesses and individuals that use Solana and its technology, the more valuable the platform will be considered and the higher the demand for SOL will be.

Partnerships and collaborations: Solana has formed partnerships with a number of major companies and projects in the blockchain space. These partnerships could lead to more widespread adoption of the platform and increase the value of SOL.

Development and innovation: Solana is continuously developing its technology and exploring new use cases. If the project is able to deliver on its promises, the token will likely increase in value.

General market sentiment: The overall sentiment in the cryptocurrency market influences the value of SOL. A general bull run in the crypto market could help to drive the market capitalization of Solana higher.

Is Solana (SOL) A Good Long-Term Investment?

Solana’s unique PoH consensus algorithm enables the network to process over 50,000 TPS making it one of the fastest blockchain networks on the market. The low latency of Solana also means that decentralized applications (dApps) and decentralized finance (DeFi) projects can provide a faster and more responsive user experience.

Ethereum is on the precipice of scaling its throughput through Layer 2 solutions, giving Solana a run for its money. Zero-knowledge (ZK) proofs and optimistic rollups give Ethereum similar transaction speeds to Solana while keeping the security of Ethereum’s network. Many investors, especially those with large sums of capital, prefer to use Ethereum as it’s more secure and decentralized than Solana. Ethereum also has far more applications and developers than Solana.

The functionality of Solana is primarily to provide a fast and efficient blockchain framework for dAPPs, NFT marketplaces, Web 3.0 apps and DeFi projects. Solana’s low latency and high transaction throughput make it great to use for cases that require quick and frequent transactions.

In addition to its technical capabilities, Solana also has a vibrant and active community of developers and projects that are building on the platform, which helps to provide a strong ecosystem for dApps and DeFi projects to thrive.

How to Buy Solana (SOL)

U.S.-based investors can get access to Solana by purchasing SOL, the native cryptocurrency of the Solana network, on a cryptocurrency exchange that supports trading of the SOL token. 

You will need to open an account with a crypto exchange. Some of the best exchanges that allow users to buy and sell Solana include: 

  • Gemini
  • HYCM
  • OKX
  • Binance
  • Uphold
  • Coinmama

With some cryptocurrency exchanges, you can buy and sell Solana paired with Tether (USDT), a stablecoin. 

Exchanges that pair SOL and USDT include: 

  • Account Minimum

    $100 USD (or equivalent)

    securely through HYCM Capital Markets’s website
  • Best For

    Variety of Tokens

  • Best For

    A Fast Trading Experience

  • Pricing

    Rates are calculated by the XBX Index average + 2% (standard derivation) + sell fee of 0.9-1.9%.

  • Best For

    Experimenting Investors

How to Store Solana Safely

When you invest in Solana or other cryptocurrencies, you must store your tokens using a crypto wallet if you want to hold your funds in your own custody. As seen by the catastrophic insolvencies in 2022, it’s a good idea to use a crypto wallet to truly own your digital assets. Several storage options are available based on your preference, risk tolerance level and intended use for your cryptocurrency: 

  • Hardware wallets: Hardware wallets are physical devices that store your cryptocurrency offline, away from the internet. This process makes them the safest way to store your SOL. Some of the best  hardware wallets include Ledger and Trezor. Ledgers and Trezors both support all kinds of cryptos including Solana, Bitcoin, Ethereum and all ERC-20 tokens.
  • Software wallets: Software wallets, including Phantom and Exodus, are digital wallets that can be downloaded to your computer or mobile device. They are generally considered less secure than hardware wallets, but they can be useful for quickly and easily accessing your SOL. 
    • Solana official wallet: Solana has its own official wallet called Sollet, which is considered a relatively safe way to store SOL. It is also user-friendly and easy to use.

It’s important to remember that no matter which type of wallet you choose, you should never share your private key (or seed phrase) with anyone. Additionally, it’s a good idea to make a backup of your wallet in case you lose access to it.

  • securely through Ledger Hardware Wallet’s website
  • Best For

    Crypto enthusiasts

  • Best For

    Staking Crypto + Earning Rewards

How Does Solana Fit in the Bigger Picture? 

Solana can be compared to other blockchain platforms like Ethereum and Binance Smart Chain, which also have their own cryptocurrencies that are used to pay transaction fees and participate in the governance of the network. These platforms are similar in that they support the development and deployment of dApps.

Ultimately, Solana sacrifices decentralization and security to scale its transaction throughput. Users enjoy quick, cheap transactions on Solana, but the network went down eight times in 2022 alone. Solana’s value-add is threatened by Ethereum security, and the future of the network is not yet certain.

Solana’s unique features, fast transaction speed and low transaction fees make it an interesting asset for developers, traders and investors.

So, Is Now A Good Time To Buy Solana (SOL)?

If you are a long-term investor and you are bullish on SOL, then now may be a good time to buy Solana. Although Solana is a relatively new blockchain platform, it is one of the largest cryptocurrencies on the market and has investors with institutional and retail investors.

Some investors may see Solana as a promising long-term investment opportunity because of its scalability features. However, as with any investment, it is important to conduct your own research and consider your risk tolerance before investing in Solana or other cryptocurrencies.

Frequently Asked Questions

Q

Is now a good time to buy Solana?

A

Now may be a good time to buy Solana if you’re a long-term-oriented investor and believe in the project’s future. The token is down over 90% from all-time highs, so buyers can enjoy a steep discount from bull market prices.

Q

Can Solana reach new all-time highs?

A

It’s possible for Solana to reach all-time highs when the cryptocurrency market turns bullish again. However, a price increase is nowhere near certain. Solana may become obsolete with the onset of Ethereum scaling technologies like ZK-proofs and optimistic rollups.

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