Solana Moon

3 reasons why Solana will be one of the leading altcoins


Moon solana

What’s hot and what’s not in crypto?

Well, one of the up and coming, fast-rising stars in this space is Solana. It has been making noise in the DeFi space and it is listed as one of the “Ethereum killers”. It seems that the in-thing is to call something a killer of the number 2 cryptocurrency in the world, especially when it has certain features that seem to make “triumph” over a “legacy” asset. 

Let’s take a closer look and find out more about what makes this coin tick. Here are 3 reasons why Solana will be one of the leading altcoins, and one that you might want to dig deeper to see if it is worth adding to your portfolio. Again, this is not investment advice. You have the responsibility to do your own research! 

1. Solana’s aim and vision is phenomenal. Solana’s aim is not Ethereum’s death. It is Solana’s acceleration to disrupt centralised finance. It is not just another "Ethereum killer". Ethereum has a three year lead over Solana but Solana is growing very rapidly. But even then, that is not the point. Those making statements like these not just on Solana but on any other altcoin have failed to account for the growth in this space. 

2. Success begets success. In terms of funding, it is one of biggest recipients. Most recently, over $300m of funding was injected by venture capitlalist Andreessen Horowitz along with other prominent holding firms. This gave them access to Solana’s native token for a lockup period. Also, Sam Bankman-Fried who became a crypto billionaire by 28 is riding on the Solana blockchain to disrupt the financial industry. He has lots of experience being in this space and this has two great advantages.

Why being an experienced crypto investor is so important is because this helps one navigate through this space more fluidly and effectively. You have a better gauge at avoiding scenarios that make you vulnerable to rug pulls.  The second advantage is that in the world of finance, transactions, liquidity all come into play and it is where if you are able to position your business on the blockchain to disintermediate existing financial rails from traditional institutions like banks, stock exchanges, insurance companies, amongst others, and take a cut from each transaction that end up hollowing out these institutions, the potential in creating and strengthening the existing blockchain ecosystem (in this case, Solana) is very strong.

And we know for one that success always begets success; that if new developers see a particular blockchain being recognised and used, they will pile on and step into the ecosystems. This builds in more projects that continue to strengthen the network. 

3. Superiority in delivery. In 2020, just slightly over half* of DeFi apps were built on Ethereum. Solana’s offering in being robust, having strong funding, faster transactions at much lower fees, as well as its market positioning as the go-to DeFi blockchain, will make it very attractive to developers and projects. 

 

What else can you add about Solana that makes it stand out as a market leader in this space? 

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BBAMarketPerspectives
BBAMarketPerspectives

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