Schlagwort: crypto business

Solana is a leading blockchain project that seeks to become a leading player in the industry. It was started in 2019 and has managed to raise more than $335 million from venture capital firms. SOL, its native token, has become one of the biggest cryptocurrencies with a market capitalization of over $33 billion. So, here are the top five things to consider when buying Solana.

Solana is an Ethereum-killer

Ethereum is a leading blockchain project that aims to become the go-to platform for blockchain developers. It has become an influential platform that has been used to build some of the most popular platforms in the industry. Some of the best-known blockchains built using Ethereum are Decentraland, Aave, Axie Infinity, and Uniswap.

Ethereum is known for its inefficiency. As a second-generation platform, apps built using the network have slow speeds and high costs. For example, the average transaction cost in Ethereum is more than $20, which is a high amount for most people. Worse, as a proof-of-work platform, Ethereum is energy inefficient since it costs about $2.5 per day to mine Ether.

Therefore, Solana is attempting to create a platform that is significantly faster, cost-effective, and energy-efficient. While Ethereum handles less than 20 transactions per second, Solana is able to handle more than 2,000. 

Solana is also environment-friendly since it uses a technology known as proof-of-stake that relies on validators. Most importantly, Solana’s cost of transaction is significantly lower considering that it costs about $0.00025 per transaction. Therefore, many developers are opting to use Solana in the past few months.

Solana ecosystem is growing

The next key thing you need to know is that Solana’s ecosystem is growing as developers look for alternatives to Ethereum. In the past few years, the number of applications that have embraced the network is in an uptrend. 

Some of the apps using Solana’s network are well-known. For example, Brave Brower uses Solana to power its Basic Attention Token (BAT). Brave is a popular browser that is used by more than 50 million people from around the world. It pays them to see adverts when surfing the web. 

Audius is another application that has embraced Solana. It is a music streaming platform that seeks to become a leading alternative to Spotify, Apple Music, and Amazon Music among others. Audius lets independent musicians make money whenever people listen to their music. 

Solana has also been used to build StepN, a leading application that is disrupting the fitness industry. Users first buy NFTs and then they are paid using the GMT token. The market cap of StepN has been in a strong growth in the past few months. 

In total, Solana has been used by developers building all types of applications. According to DeFi Llama, the network has a total value locked (TVL) of over $6 billion. This makes it the fifth-biggest platform in the industry after Ethereum, Terra, BNB Chain, and Avalanche.

Solana is facing strong competition

If you want to buy Solana, you need to know that the network is facing strong competition as more developers seek to dethrone Ethereum. There are many such projects. The biggest competitor to Solana is Ethereum itself. 

While Ethereum has been known for slow speeds and inefficiency, its developers are building Ethereum 2.0. The goal is to transition Ethereum from a proof-of-work to a proof-of-stake network, meaning that transactions will be confirmed using validators instead of mining. 

Further, Ethereum will embrace a technology known as sharding that will make its transactions much faster. Therefore, there is a likelihood that more people will stick with Ethereum.

Second, Solana is facing competition from platforms like Terra, Avalanche, Polygon, Cronos, Fantom, and Tron. Some of these platforms have faster speeds than Solana. For example, Avalanche is able to handle over 4,500 transactions per second. 

Similarly, Kadena is able to handle more than 480,000 transactions per second even while using a proof-of-work mechanism, Therefore, Solana will likely struggle to compete in the coming years as the industry gets crowded.

Solana TVL is slowing

While Solana is a decentralized platform, the reality is that it uses several centralized platforms like Amazon and Cloudflare to work. Therefore, when there is an outage in these platforms, Solana, and apps hosted in its ecosystem tends to be affected. 

In the past year, Solana has experienced about 6 outages, the most in the decentralized industry. For example, in January, it suffered an outage that pushed it offline for days. 

The impact of these outages is that many developers have now opted to embrace other platforms to build their applications. Also, the total amount of money staked in Solana has been on a downward trend. The total value locked (TVL) has dropped from an all-time high of $14.9 billion to about $6 billion.

Some applications that have seen a sharp decline in TVL are Saber, Serum, and Almond. Marinade Finance, Raydium, and Solend have also seen a sharp decline in TVL.

Solana faces an uncertain future

Solana has been a strong blockchain platform in the past few years. It has become one of the most traded coins in the world. According to Staking Rewards, Solana worth over $30 billion has been held by stakers. This is a significantly strong amount. 

However, with competition in the industry rising and with the total value locked in the network slowing, Solana faces an uncertain future ahead. Its future will depend on how fast developers will be in improving the network. You can check out some of the best cryptocurrency apps for buying Solana.

The post Should I Buy Solana? 5 Things You Should Consider appeared first on Coin Journal.

Solana (SOL) and Avalanche (AVAX) are two of the biggest Ethereum-killers in the industry. The Solana token is valued at over $33 billion while Avalanche has a market cap of over $20 billion. In the past few months, the two tokens have been under pressure, with AVAX falling by over 47% from its highest point in 2021. Solana has been worse considering that its token has fallen by 61% from its all-time high. In this Solana vs Avalanche article, we will look at the best option between SOL and AVAX.

The case for Solana

Solana is a leading blockchain project that is known for its speed and efficiency. According to its website, Solana can handle as many as 2,000 transactions per second. The platform has been used to build some of the best-known applications in the world.

For example, it has been used to build Brave Browser, a platform used by more than 50 million people every month. It has also been used to create StepN, the fast-growing fitness, and NFT platform. StepN’s GMT token has risen by more than 20,000% in the past few weeks. Another app built using Solana’s platform is Audius, the company that is disrupting the music streaming industry. 

Solana has also been used widely in the Decentralized Finance (DeFi) industry. It has a total value locked (TVL) of more than $6.77 billion, which is lower than its all-time high of over $14 billion. Some of the top applications built in Solana are Marinade Finance, Serum, and Raydium among others. 

Therefore, while Solana’s ecosystem is growing, there are signs that the number of transactions in the network is easing. This could be a risk to the network.

The case for Avalanche

Avalanche is another blockchain project that is looking to disrupt Ethereum’s network. Like Solana, it is widely known for its blazingly fast speeds. The network has been in a strong growth in the past few months. As a result, its total value locked in DeFi has risen to more than $10 billion, making it the fourth-biggest network in the industry.

Like Solana, Avalanche has been used by some of the best-known developers in the industry like AAVE, Trader Joe, BENQI, and Curve. It has also been embraced by leading platforms like 1inch, Alliance Block, Arweave, Atlantis World, and Avalaunch among others.

Between Solana and Avalanche, I am inclined to believe that Avalanche is a better investment. The network has a higher throughput and is growing exponentially thanks to its incentive programs.

The post Solana vs Avalanche: Which is a better buy between SOL and AVAX? appeared first on Coin Journal.

XRP is currently up by more than 5% in the last 24 hours, outperforming the broader cryptocurrency market.

The cryptocurrency market has been underperforming over the past few hours. The market has lost more than 2% of its value in the last 24 hours, with the total market cap dropping below the $1.9 trillion threshold once again.

Bitcoin attempted to climb towards the $43k resistance level but is now trading around $40k again. If the bearish momentum continues, Bitcoin could drop below $40k for the first time in a week.

XRP, the native token of the Ripple blockchain, is up by more than 5% in the last 24 hours, making it the best performer amongst the top 10 cryptocurrencies by market cap.

The primary catalyst behind XRP’s ongoing positive performance is the announcement by Ripple CEO Brad Garlinghouse that Ripple is winning in its ongoing case with the United States Securities and Exchange Commission (SEC).

Garlinghouse told CNBC he expects the case to come to an end soon with a victory for Ripple. 

Key levels to watch 

The XRP/USDT 4-hour chart is bullish despite the broader market currently in a bearish trend. The technical indicators show that XRP is recovering from its recent slump.

The MACD line is heading towards the neutral zone, indicating that XRP is no longer in bearish territory. The 14-day relative strength index of 59 indicates that XRP could soon enter the overbought region if the rally continues.

At press time, XRP is trading at $0.7646 per coin. It could surpass the first major resistance level at $0.8111 before the end of the day.

However, XRP would need the support of the broader crypto market if it intends to surpass the $0.8652 resistance level in the short term. 

The post Why is XRP outperforming the broader market today? appeared first on Coin Journal.