Solana SOL / USD started in 2017 and was launched in March 2020 by the Solana Foundation. The Solana protocol is designed to facilitate the creation of decentralized applications (dApps). The main goal is to improve scalability by introducing proof of history (PoH) in combination with a proof of stake (PoS) consensus algorithm.
Over the past year or so, Solana has become very popular with investors as the coin has risen from less than $ 1 to $ 40 today. The increase in interest is due to the fact that many applications are being developed on its blockchain due to its high performance. In fact, there are currently 157 projects launched in Solana.
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But this begs the question: isn’t it too late to buy Solana now? Let’s take a look at potential catalysts to further add value to SOL.
Should you buy SOL?
On May 12, three funds, Gate.io, Coin DCX and BRZ, were formed to invest $ 60 million in projects based on the Solana blockchain in emerging markets.
On June 3, the Solana Foundation launched a $ 20 million fund to help expand the ecosystem across South Korea through a blockchain fund known as ROK Capital.
The next day, it was revealed that the blockchain had raised between $ 300 million and $ 450 million, as shown in a report released by Decrypt on Friday. He says Solana planned to close the round in March, but expanded it in response to strong interest.
This investment will lead to an upgrade of the entire project, which can bring with it all projects running on the Solana blockchain. More users and developers will generate much more interest, liquidity and general acceptance, which will be essential for future growth.
Data source: tradingview.com
With literally hundreds of decentralized applications being developed on the Solana blockchain in response to its high performance, the potential for further growth is clear. In the future, even Ethereum-based decentralized applications may see the value of moving to this blockchain or developing separate decentralized applications that also run on SOL.
When we take into account the fact that the Solana Foundation launched $ 20 million to fund the South Korean ecosystem and that it raised between $ 300 million and $ 450 million in funding, we can get an idea of what kind of innovation it could bring. at the table in the future, especially towards the end of 2021.
However, at the current price point of around $ 40, SOL could be a good investment. Looking at the chart, one can see strong support around $ 25, so nervous investors can buy half of their position at $ 40, and if the price drops to $ 25, they can buy the other half to downgrade their position. point.
Solana traded above the $ 50 level in May before the entire cryptocurrency environment sold hard. But in the future, we may see SOL return to its heights as the ecosystem in South Korea improves and the funds invested in the project begin to flow into future innovation.
By 2022, its cost could even skyrocket to $ 100. This is because many projects may end up using the Solana blockchain due to its various innovations and improvements over other blockchains. It can also be widely accepted and available to the general public, further enhancing its value.
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