The crypto winter has been harsh for most blockchains with Solana (SOL) being one of those that almost died before 2023 started. Despite its dropping popularity from December to January, it was given new life as the new year rolled over. It is now one of the top crypto investments by market capitalisation and trade volume, ready for an upwards trend.
Changes in SOL price between January 1 and February 25
There were worries surrounding the success of Solana after it experienced a record drop of 70% since April 2022. Though the rate is alarming, the price drop is heavily attributed to the crypto winter of the same year which other crypto is also susceptible to. It finally showed steady growth from 1st January to 20 February where prices elevated by 148%. SOL is still nowhere near its former glory but it is a start good enough for returning investors.
Crypto related to Solana’s bullish trend
There are several blockchain projects relying on Solana’s fast systems. The most notable of which are decentralised exchange Serum (SRM), decentralised liquidity protocol Raydium (RAY), and finance protocol Oxygen (OXY). All three are experiencing different trends from each other.
SRM is in a steady drop, reaching -19% rate as of 20th February while RAY fares better at 22.6%. OXY, meanwhile, has stabilised with occasional fluctuations between -10% and 11%. More mainstream crypto news on Bitcasino.io features the success of Ethereum (ETH), a similar but more popular blockchain to Solana. Both networks have interoperability with each other, ensuring that one’s success can complement the other.
What is Solana
Solana was released in 2017 and it was dubbed ‘Ethereum-killer’ for having similar features with the latter network albeit with better performances. That nickname was soon forgotten because both blockchains complement each other, especially after the Ethereum Merge of 2022. Here’s a clear-cut comparison between the two platforms for a better understanding of what they do:
Similarities with Ethereum
Both Solana and Ethereum are second-generation blockchains. Their main feature is to oversee smart contracts and provide development tools for the creation of decentralised applications (dApps). Everything created in their respective platforms is programmable and publishable on the Web3.0 where they become available for public use.
Difference with Ethereum
The biggest difference between the two networks is the consensus system. Ethereum (post-merge) is using a proof-of-stake (PoS) mechanism. It chooses which validator to oversee the next transaction based on the amount of crypto they stake as collateral. Solana was always operating in proof-of-history (PoH) which decides who gets to validate based on whether they’ve been chosen yet in the current clock cycle.
Why stay tuned to Solana’s growth
Solana’s growing platform of dApps and projects as well as its interactions with the Ethereum network are growing ever more relevant in 2023. They are the leading blockchains for the future of Web3 and many believe that the next crypto revolution will be all about interoperability. If so, then Solana SOL is a great investment with great potential. This is evident by its steady rise in marketplaces in both prices and trade volume. Stay tuned for more crypto news on Bitcasino.io where crypto gamblers find market trend updates.
