What is Solana?
Solana is a high-performance blockchain platform designed for decentralized applications (DApps) and crypto projects. The project is not as decentralized as Ethereum, but it does have other advantages that are a must-have such as high throughput and scalability. This is a result of its consensus mechanism called Proof of History (PoH) in combination with Proof of Stake (PoS).
Solana is designed to scale horizontally, meaning that as the network grows, it should be able to handle increased transaction volumes without sacrificing speed or efficiency. The platform also aims to provide low transaction fees, making it attractive for developers and users.
A ride from $9,72 explosion to $96,51: too fast too furious?
Solana started 2023 at a low valuation. It was particularly hit hard during this long bear market. Yet, it has recovered remarkably well, up to a point that I think investors should be cautious. It seems to me that 2024 will bring much more growth to Solana, but no market goes up in a straight line, and the necessary correction to restest certain levels still needs to happen.
Looking for Solana opportunities?
The Solana ecosystem has exploded this year, with several projects doing airdrops. I am one of the people who didn't participate in any airdrops, unfortunately. But that doesn't mean I don't study the Solana ecosystem.
Are there Solana gems waiting to break out of their price range? To discover such gems you need to think about the narrative. NFT's for example, are not my thing. I did look at the Ethereum ecosystem and one of Ethereum's leading projects is Chainlink. And here lies one opportunity.
Within the Solana ecosystem, this role is fulfilled by Pyth Network. This coin hasn't taken off yet. Its market cap is small compared to other Solana projects, and the future of the PYTH oracle, operating on the Solana network, is bright, as it is more sophisticated than Ethereum's Chainlink, largely due to its superior transaction throughput.
If you want to read my full analysis on Pyth Network, feel free to visit my article: Pyth Network, the Chainlink of SOLANA! Unique Oracle opportunity for the Solana driven 2023-2024 bull market! And beyond.
I also want to wish everyone a Merry Christmas and may you find the right gifts under the tree.