Solana came in as a new addition to a coterie of the so-called Ethereum Killers in 2020. The cryptocurrency has posted a whopping 16,000% growth ever since its inception. The heavy investments that followed this surge have raised the market cap of the coin to $73 billion from its initial $86 million. Now, the coin enjoys the 6th position in the market and officially entered the list of Ethereum Killers.
Long-term investors are looking for the right asset for investment. However, the current surge in the market and the rapidly changing federal policies make one easily overlook the volatility of the coin. This has put long-term investments in a dilemmatic condition. However, this is not the case with Solana, as investors believe that two recent events would give this coin the impetus needed for continuing its bullish streak in the future. Read this Solana price prediction for an in-depth analysis of what SOL could have in-store this year.
Firstly, the announcement of Solana Pay that came a few days ago with the proposal for a universal and integrated payment environment for cryptocurrencies and fiat money alike. The primary idea is to bring a user-friendly, cost-effective payment option for cryptocurrencies, free of technicalities. But what made the concept stand out was its comprehensive design which included all the emerging fields like NFTs and metaverse. The benefits of one’s payment are also set to reflect in the virtual world through NFTs as well as the real world. It also helps business people to explore other options rather than rely on traditional modes of business.
The blockchain currently can process as many as 50,000 transactions per second. However, the number has decreased significantly, bowing to the recent traffic issues on the blockchain. But, as Solana is known for comebacks, this aspect is expected to play a pivotal role in SolanaPay’s ascension. Moreover, the fee structure of Solana Pay is designed specifically to lure small to medium-scale businesses to the blockchain. This would significantly increase the number of users on the blockchain and, in turn, the market cap.
Orca and Bonfida are SPL-based cryptocurrency projects from Solana. The listing of these SOL tokens is expected to keep Solana in the limelight as they grow on Coinbase. Additionally, the growth of these startups would attract more investments to the Solana chain, consequently adding to the price of SOL in the market.
These announcements came as a green signal for long-term investors. Solana Pay is a dream that every blockchain wants to see come true. This system could potentially be incorporated into other blockchains as well, taking cross-chain connectivity to another level. The second announcement has made investors look beyond the short-term goals of Solana. This gradual change might reduce the volatility of Solana in the years to come. As for now, these two events give more reasons for investors to dive into Solana.