Cryptos

Solana is almost $ 70, why it could get even hotter in coming months

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Solana (SOL), which has seen a remarkable rally in all areas, has seen a rise of almost 20% in the past 24 hours. The cryptocurrency makes a profit of 70% and 14% on the monthly and 7-day charts.

SOL on a rally in daily chart. Source: SOLUSDT Tradingview

Solana is being viewed as one of Ethereum’s most powerful ecosystems. It continues to grow and attract the attention of the crypto community. Recent DeFi investor Daniel Cheung PublishedA report on the foundations supporting further appreciation of SOL’s price

Cheung believes this cryptocurrency offers one of the “best” reward / risk scenarios for any crypto investment and predicted the arrival of “Solana Summer”. Because of its low cost and high scalability, this project is easy to pitch.

It also offers high scalability in an ecosystem that lacks sharding solutions. Cheung believes that these features allow the application built on Solana to have “synchronous composability”.

This is because applications on Solana have the ability to communicate atomically thanks to a single shared status and synchronous composability.

This property could be lost as Ethereum moves from a proof-of-work consensus algorithm to proof-of stake. Some applications may become less interoperable with one another or cease functioning altogether.

The bearish Solana case, which could limit further gains

NewsBTC reported that the Solana Foundation launched stake pools to increase the security of its network, make it more resistant to censorship and offer SOL holders more incentives for participation. to the ecosystem.

The network’s centralization has been criticized by many as the harshest criticism. Cheung believes this is part Solana’s bearish thesis. She says that the network “may never be decentralized enough in the future.”

Ethereum itself is the second thing that could stop this ecosystem gaining traction. This competitor supports the majority DeFi projects and has a large number of developers working in dApps, ecosystem development, second layer solutions, and so forth.

Solana SOL SOLUSDT
Source: Daniel Cheung via Twitter

Cheung stated that Solana faces an uphill struggle against Ethereum. DeFi, however is one area where it is more visible that the crypto industry. It could invariably move towards a “multichannel world”, as Cheung said.

It is not clear if smart contracts will be a win/win market. Although Ethereum is currently leading the charge, data points increasingly point towards a multi-chain future. At least, for the foreseeable future.

On the topic of centralization, the investor stated that there is much debate about whether a blockchain has the right balance between decentralization and centralization. Cheung estimates that 1,000 or 10,000 nodes could be enough, that would make criticism of this network “invalid”.

The investor provided data which confirms that SOL ecosystem development is on a “very positive trend” and has accompanied price appreciation. This trend will continue in the future, as relevant figures in crypto, such as Sam Bankman Fried (FTX CEO), are “heavily associated” with Solana.

Cheung said that Bankman Fried made serious investments in this environment. The exchange and its CEO have made investments in traditional sports and finance. They also consolidated partnerships with politicians, celebrities, and other investors.

Wall Street institutions are more likely than others to invest in Solana or its ecosystem. Cheung concluded:

With the bearish arguments cancelled out, you have an asset that offers one the best R/S in crypto right now and offers a virtually endless rise in a bubble compared to $ETH, which is trading as the race to become the Internet’s reserve currency.




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