Can Solana mainstreaming profit the global cryptocurrency landscape

Different blockchains are believed to have entered the market, amongst which Solana is reportedly attracting investors. It’s understood that Solana carries potential to ensure growth of decentralised applications (dApps), and can also provide competition for Ethereum. 

According to Solana, a blockchain platform, 2022 saw total number of Solana developers grow by 83%. The platform also mentioned that there’s been a 16 times increase in count of full-time developers since 2018. “I believe Solana’s features make it a promising investment opportunity. Its proof-of-stake consensus mechanism and scalability has potential to make it attractive to investors seeking high transaction throughput and a low environmental impact,” Rajagopal Menon, vice-president, WazirX, a cryptocurrency exchange, told FE Blockchain.

Market behaviour indicates that Solana’s ability to execute transactions can benefit fields such as decentralised finance (DeFi), gaming, non-fungible tokens (NFTs), among others. Insights from Bankrate, a consumer financial services company, highlighted that Solana can offer facilities such as currency, smart contracts, digital applications, and proof of history approach. In September, 2022, estimates showed that there were 353 million active Solana tokens. 

“With the development of blockchain applications, and with its ability to handle smart contracts, Solana is expected to adopt all the innovations and applications that are being introduced into the blockchain space. With TPS as well as the ability to handle smart contracts, Solana is a layer-1 blockchain,” Pratik Gauri, founder and CEO, 5ire, a blockchain-based platform, said.

Experts believe that Solana’s expansion can bring an upward trend in investment opportunities, and help industries such as e-commerce and supply chain. As per The Motley Fool, a financial and investing advice firm, Solana has witnessed a 33.58% growth during 2023’s first week, after being down around 94% in 2022. The firm added that Solana is the second-ranking leader in the NFT space, despite enduring FTX collapse implications.  

Moreover, 2023 predictions have stated that Solana could reach a $25.44 valuation during the year’s concluding period. Analysis from investors anticipate an increase in number of Solana validators to help cut down the centralisation factor. Coin Price Forecast, a cryptocurrency price indicator, emphasised that Solana could reach $62.54 price by 2025 end.

“Solana has potential and is in demand due to its ability to process transactions per second at lower fees than other blockchain platforms. However, Solana has faced outage issues that have raised concerns among users and investors. If Solana can address and resolve these issues, it has the potential to become a popular blockchain platform in the market,” Edul Patel, co-founder and CEO, Mudrex, a crypto-investing platform, concluded.

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