Is Solana Crypto A Buy For 2023?

Solana has what it takes to rally even more in 2023

Last Updated December 29th 2022
5 Min Read

Solana (SOL) had a great run in the last bull rally. 

It went up by over 10,000% before the crypto market entered a correction in November last year. Like the rest of the market, Solana took a huge hit that was compounded by its network stability issues. 

However, with the broader market stabilizing, Solana has been showing signs of stability. Let’s look at Solana’s prospects to try to determine if SOL is still a buy for 2023. 

Despite Its Flaws, Solana’s Consensus Model Is Revolutionary

Solana has experienced a series of network outages over the last few months. This has been attributed to its largely experimental Proof-of-History consensus model. However, this is not something unique to Solana. Most new technologies tend to have such issues in their early days, but as the problems get resolved, the true power of such technologies is exposed.

Similarly, Solana’s technology may have issues at the moment, but the tech is quite revolutionary. Solana runs on a technology called Proof-of-History that combines with the conventional Proof-of-Stake. The idea is that transactions are handled on a First-in, First-Out basis. This significantly cuts transaction speeds by a huge margin while keeping transaction fees as low as $0.01. 

This is in contrast to conventional Proof-of-Stake and Proof-of-Work algorithms where high-value transactions are given priority. Solana’s approach gives it the potential to handle up to 50k transactions per second. These capabilities have helped Solana rise fast as a platform blockchain and give Ethereum a serious run for its money. 

Once Solana resolves most of the issues plaguing the network, its Dapps ecosystem could expand significantly in short to medium term. This could see SOL do another run-up in price similar to what it did in 2021. 

It’s a solid reason to buy Solana in 2023. 

Check Out: Solana (SOL) Price Prediction

Solana Is Capturing A Sizeable Chunk Of The NFTs Market 

NFTs are among the hottest things in crypto at the moment. Not only are thousands of them being minted daily, but they are also selling at record speeds and for record-making prices. 

Since 2021, Solana has experienced a surge in NFTs, and this does not seem to be slowing down. Solana’s Soloart has of late become one of the most important NFT marketplaces in crypto and currently has an NFT correction of over 10k.   

Solana has experienced a surge in adoption for NFTs because of Ethereum’s network issues. While Ethereum is trying to deal with these issues via Ethereum 2.0, there is zero chance that it will ever reach Solana’s levels of efficiency. This means as long as NFTs remain hot, Solana will keep drawing in more of them. This makes it a perfect cryptocurrency to buy in 2023 since adoption also means more demand for SOL. You need SOL to mint NFTs on the Solana blockchain. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

There Is Broad Market Adoption For Solana

Despite its many network issues, Solana’s has gone mainstream and continues to gain adoption among the big crypto players. For instance, most major exchanges now list Solana, including Binance and Coinbase. This is a big deal because it ensures that Solana volumes remain high at all times. It also guarantees that Solana could be among the cryptocurrencies that perform better than a lot of other cryptocurrencies in another bull rally. This makes it one of the cryptocurrencies to buy now. 

Solana Has A Huge Ecosystem Of Projects Building On Top Of It

Despite being a relatively young blockchain, Solana has experienced massive adoption over the past year. More than 400 cryptocurrency projects are currently building on the Solana blockchain, and the numbers are growing by the day. One area where Solana has experienced massive adoption is in DeFi. Some of the popular projects built on top of Solana are Serum, Raydium, DeFi land, and Audius. 

All these are projects that are likely to get even bigger not just in 2023 but for many years to come. More are also likely to come up as more developers take advantage of Solana’s low fees and breakneck speeds unrivalled crypto space. This factor could see Solana rally not just in 2023 but for many years to come. 

Solana Has A Strong Community Backing It Up

The community behind a cryptocurrency is a big deal regarding its potential for growth. The bigger the community, the higher the prospects of a cryptocurrency to grow in value long term. This has a lot to do with generating hype that can draw in new money in times of bull market. 

This is most evident in the price action of meme coins in the last Bull Run. 

Meme coins outperformed the market in the last Bull Run because of the hype generated by their communities. In essence, the fact that Solana has a strong community behind it makes it a pretty good cryptocurrency to buy now. The odds are in its favour both in the short and long term.

Read Also:  Will Solana Make Me Rich In 10 Years

Should You Buy Solana Crypto In 2023?

Solana is not expensive despite rising by over 10,000% in 2021. That’s because it started 2023 in a correction, yet the fundamentals have been getting stronger. For instance, the number of NFT projects launching on Solana is rising. The Solana team has also done a lot in ensuring that the network remains stable at all times.  

To sum it all up, investors can get into a next-generation platform blockchain. So, yes, Solana is a cryptocurrency to buy for 2023. There is a lot that can go its way this year.  

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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