With many new tokens being added to the Solana blockchain every minute, sometimes it can become overwhelming to find yourself a position to enter the market on a token that you have alot of conviction investing in.
So, what is actually making it hard for investors? Many factors! - Volatility, Snipers, KOL shillers, LARP's, Bundled projects, AI trade bots, MEV bots, Hacked official government and celebrity accounts posting false narratives or scams....The list goes on.
This leaves investors with a lot of pot holes and mouse traps to avoid in order to stay in the loop and safely invest their money in projects that have real world utility with a promising future. Fortunately, everything on the blockchain is public, which allows people like me and you to unveil the curtains behind any project or token.
History of Solana
Solana (SOL) has been making waves in the cryptocurrency world with its impressive technology and ambitious goals. But like any cryptocurrency, its price has seen its fair share of ups and downs. Let's take a look at the price history of Solana:
Early Days and Explosive Growth:
2020: Solana launched in 2020 with a price around $0.50. It quickly gained attention for its fast transaction speeds and low fees, attracting developers and users to its platform.
2021: The price of SOL skyrocketed in 2021, driven by the booming NFT market and the growing popularity of decentralized finance (DeFi). It reached an all-time high of around $260 in November 2021.
Market Corrections and Resilience:
2022: Like many cryptocurrencies, Solana experienced a significant price correction in 2022 due to various factors, including macroeconomic conditions and the collapse of the FTX exchange.
2023: Despite the challenges, Solana continued to develop its technology and expand its ecosystem. The price started to recover in 2023, showing the project's resilience and potential.
Recent Trends and Future Outlook:
2024: Solana has continued to gain momentum with increasing adoption and innovative projects building on its blockchain. The price has been on an upward trend, reflecting the positive developments in the ecosystem.
2025: As of February 7, 2025, Solana is trading at around $192. It has recently reached an all-time high of $293.31 in January 2025. With ongoing development and growing interest in blockchain technology, the future of Solana looks promising.
Tools that Determine a Bad Token
This is a great tool for determining bundles of wallets that hold the top % of any token. Large bundles with money moving back and forth can be a sign of price manipulation. In this example we will look at Dogwifhat. A top trending meme coin that is listed on many top exchanges. The largest holders of these tokens are the exchanges themselves, this is to create liquidity pools that are more interesting to large investors. More money being processed through an exchange means more money the exchange earns in fees. This is a healthy and natural looking bubblemap but doesn't mean it's a good investment fully!
Unhealthy bundled tokens will have large clusters of wallets that funnel into just a few top holders. If it is not an exchange holding these tokens but just a random wallet, chances are it's an insider getting ready to rug the project!
One of the more simple tools that you can use is Solsniffer. Using a data fetch AI, solsniffer is able to give you a risk assesment based on truely fundamental sectors of the tokens data. The risk assessment (Snifscore) isn't always 100% accurate but it highlights key information that can be great for investigating deeper into the token and investment potential. Use this in combination with Bubblemaps to understand the risks more accurately.
GMGN is another AI Data Fetch tool that provides a unique and interesting utility. Not only can you immediately filter out tokens that have developer tokens burnt, but also the percentage of "BlueChip" holders. These are tokens where large investors are putting their money but this does not mean they have high conviction on the token itself. This tool can visually show where the money is flowing in the current market which can help you determine if the price and momentum matches your investment!
This is one of the best tools as you can search any wallet address or contact address on the Solana blockchain, which will show you transactions, transfers, Defi activities, NFT activities, balance changes, analytics, stake accounts and domains.
All the data displayed for each of the activies above will include the signature address, block number, time stamp, action/instruction, SOL value, SOL fee and the programs used.
Having all this transparent data can really help you as an investor in making better decisions and have more thourough evaluations.
Potential of Solana
Technological Prowess: Solana's high throughput and low fees make it a strong contender for decentralized applications (dApps), especially in areas like DeFi and NFTs. Continued development and optimization could solidify its position as a leading blockchain platform.
Growing Ecosystem: Solana boasts a thriving community of developers and users, with a constant influx of new projects and innovations. This network effect can be a powerful driver of growth.
Institutional Interest: Increased adoption by institutions and potential integration with traditional financial systems could propel Solana into the mainstream.
Challenges and Uncertainties:
Network Stability: Solana has experienced occasional network outages in the past, raising concerns about its reliability. Addressing these issues is crucial for long-term success.
Competition: The blockchain arena is crowded, with Ethereum and other layer-1 solutions vying for dominance. Solana needs to maintain its competitive edge to stay ahead.
Regulatory Landscape: The evolving regulatory environment for cryptocurrencies could impact Solana's future. Clarity and favorable regulations are essential for its continued growth.
Looking Ahead:
Despite the challenges, Solana's potential remains undeniable. Its technological advantages, coupled with a passionate community, position it for significant growth. However, overcoming network stability issues and navigating the regulatory landscape will be critical for realizing its full potential.
Get Started with Solana
Top Centralized Exchanges (CEXs)
Coinbase: Known for its user-friendly interface and strong security, Coinbase is a great option for beginners. It offers a wide range of cryptocurrencies, including Solana, and supports various payment methods.
KuCoin: Known for its wide selection of altcoins and user-friendly interface and low fees.
Binance: The largest cryptocurrency exchange globally, Binance boasts a massive selection of cryptocurrencies, competitive fees, and advanced trading features. It's a good choice for both beginners and experienced traders.
Kraken: A well-established exchange with a focus on security and compliance, Kraken offers a user-friendly platform and a good selection of cryptocurrencies, including Solana.
eToro: A popular platform for both crypto and traditional investments, eToro offers a simple and intuitive interface, making it suitable for beginners.
Bybit: A popular exchange with a focus on derivatives trading, Bybit also offers spot trading for Solana and other cryptocurrencies.
Top Decentralized Exchanges (DEXs)
Raydium: A popular DEX built on Solana, Raydium offers fast and low-cost transactions.
Orca: Another Solana-based DEX known for its user-friendly interface and ease of use.
Jupiter: A DEX aggregator that pools liquidity from various Solana DEXs to ensure optimal swap rates.
