With Solana NFTs gaining momentum, Can Solana make investors richer?
- Solana has dropped by 23% in the past week.
- However, Solana NFTs are gaining momentum and could boost SOL.
- There are a few risks you need to know before buying SOL.
Solana (SOL) is one of the best performing cryptocurrencies today. From its launch date, Solana now has an ROI of 46,500%. Like most top cryptocurrencies, Solana has dumped and is down by 23%. That said, many investors are buying Solana, indicating that investors expect SOL to perform well going into the future. This is not without reason, as a lot of development is going on within the Solana ecosystem, especially NFTs.
So, will Solana bounce back? Can investing in Solana today make you richer if it makes a comeback? Let’s take an in-depth look of Solana to find out.
Will Solana Rally Again In The Future?
Towards the end of 2021, Solana was hit by a series of network outages. This led to concerns around its viability and triggered a quick price drop. The crash was accelerated by a correction in the broader cryptocurrency market. Solana has yet to retest its all-time highs of $260.
However, Solana has made great strides towards changing the narrative, and confidence is returning. This is evident by the heavy investments injected into the Solana ecosystem. For instance, in March, two NFT projects raised close to $50 million for developments on the Solana blockchain. Solana is also growing in adoption as a preferred blockchain for DeFi projects.
This growth in the adoption of Solana is not without reason. Solana happens to be one of the most scalable blockchains out there. Solana can handle up to 50k transactions per second and has some of the lowest fees of all major platform blockchains.
Given that scalability is one of the key ingredients needed for DeFi and other Dapps to thrive, there is no doubt that Solana has what it takes to succeed going into the future. Solana is a cryptocurrency that can make you richer if you are patient enough.
Don't Miss: Solana (SOL) Price Prediction
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A Few Risks To Be Aware Of When Investing In Solana
Given the exponential growth in the Solana ecosystem, Solana looks quite enticing as an investment. However, before you invest, there are some risks that you need to consider.
One of them is that Solana may not be out of the woods yet in terms of network stability. Solana uses a new and largely untested consensus mechanism called Proof-of-History. While this approach makes Solana fast, there have been concerns that it could be flawed. This is a factor that could affect Solana adoption going into the future, especially if a few more network outages happen.
Besides such internal issues, Solana has to contend with ever stiffer competition. For context, Solana and similar blockchains responded directly to Ethereum’s scaling problems. These issues are coming to an end through Ethereum 2.0 and could impact the adoption of the newer platform blockchains such as Solana.
For Solana to succeed long term, it needs to prove its competitiveness relative to Ethereum and other top platform blockchains.
Is Solana The Best Investment For You?
While Solana has some risks, as highlighted above, it doesn’t mean that SOL is a bad investment. If Solana can prove to developers that it can be counted on to run without frequent network outages, then it is likely to grow in adoption and make investors richer.
Essentially, you need to approach Solana with a rational mind. Know that while Solana can make you richer, it carries its fair share of risks, and you could lose all your money. If you are not comfortable with high risks, you would be better off investing in blue-chip stocks or other low-risk investments.