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Is the SOL token worth investing in after its praise by a Bank of America strategist?

Is Solana a good investment opportunity in July 2021

Solana SOL/USD is a blockchain platform specifically designed for the process of hosting decentralized as well as scalable applications. It is based on the Proof-of-Stake (PoS) consensus model and uses Proof-of-History (POH) as its model.

SOL is the native cryptocurrency token that powers the Solana blockchain.

Solana’s low transaction fees, scalability, and ease of use as catalysts for growth

On January 10, we discussed how Solend could reshape the Solana lending ecosystem.

Bank of America’s digital asset strategist, Alkesh Shah, said on Business Insider that Solana could become the “Visa of the digital asset ecosystem” through a research note.

Since the launch of the Solana network in 2020, the SOL cryptocurrency token has managed to grow into one of the largest cryptocurrencies in terms of market capitalization. 

Shah suggested that Solana is taking a slice out of Ethereum’s market share thanks to its low fees, ease of use, as well as scalability. Ethereum, on the other hand, is relegated to high-value transactions and identity, alongside storage and supply chain issues.

Visa processes an average of 1,700 transactions per second (TPS), while the network can theoretically handle 24,000 TPS.

Ethereum currently handles 12 TPS on the mainnet, while Solana has a theoretical limit of 65,000 TPS. 

Should you invest in Solana (SOL)?

On January 13, 2022, Solana (SOL) had a value of $151.72.

To get a better perspective as to exactly what this value point means for the SOL token, we will go over its ATH point of value as well as its recent performance.

Solana (SOL) had its all-time high value on November 6, 2021, when the token reached a value of $259.96. Here, we can see that at its all-time high-value point, the SOL token was $108.24 higher in value or by 71%.

When we go over the token’s performance the previous month, we can see that it had its highest point on December 2, when the token reached a value of $242.28.

Its lowest point of value of the month, however, was on December 14, when the token decreased to a value of $151.62.

This means that the token decreased in value by $90.66 or by 37%.

With this in mind, if the SOL token breaks above the $155 price barrier, it could see an increase to $170 by the end of January. However, if it decreases under $150, it might be worth reconsidering it.

The post Is the SOL token worth investing in after its praise by a Bank of America strategist? appeared first on Invezz.



from Market Analysis – Invezz

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