Why Is Solana (SOL) So Cheap
Why is Solana (SOL) so cheap right now? Will Solana altcoin prices rise again, and is it worth buying? These are some of the questions that most crypto investors are asking today.
The truth is that several internal and external factors dragged Solana token prices to the low levels it is trading at today. However, the biggest cause of SOL’s cheap prices today is the mid-May 2021 Bitcoin price crash. Before the crash, Solana was enjoying a wild run and had just set its current all-time high price. But as soon as Bitcoin prices started plummeting, they brought down with them the entire crypto market - Solana included, and it has not recovered yet.
At the time of writing, Solana was trading around $156, which is perceived to be ‘cheap’ by some of its current investors and by a section of the crypto community. We must, however, mention that the fact that the SOL token is perceived as being lowly priced doesn’t necessarily mean that it is a low-value coin. On the contrary, Solana ranks highly among the most promising blockchain technologies.
Additionally, and even at this low price, Solana cryptocurrency has a live market cap of $46 Billion and is ranked as the 7th most valuable crypto project by CoinMarketCap. This is in contrast to some highly-priced altcoins like Maker (MKR), which is trading at $3000 but with a market cap of $3 Billion or Aave, which is trading at $390, but with market cap of $5 Billion.
You, therefore, will be right to assume that Solana is only cheap and trading at relatively low prices because its investors, and the crypto community at large, understand its potential. They know that it has performed better in the past and that it could do better.
So, what are some of the factors keeping Solana at the relatively low price levels? Importantly, is it worth buying, and if yes, should you buy Solana now? We answer these questions below and tell you everything else that you need to know about investing in Solana in this guide.
But first, we look at its price history.
Solana (SOL) Price History
Solana launched the live auction for its tokens in mid-March 2020, with a reserve price of $0.4 per SOL token. CoinMarketCap records its first day of trading on 11th April 2020, and it ended that day selling for $0.77. In the three months that followed, the coin strained to force an uptrend and eventually succeeded when the coin broke above $1 for the first time on 12th July 2020.
It climbed steadily and punched above $4.7 by 31st August. The ascent was, however, short-lived as the coin prices fell gradually and SOL was trading below $1.5 by mid-December. It eventually crossed into 2021, trading around $1.8 and quickly caught with the cryptocurrency price rally sweeping the market at the time.
It embarked on a spirited rally that saw SOL token prices reach $10 for the first time on 19th February. The uptrend continued, and on 3Rd April, Solana token prices broke above $20 before rising further and hitting the high of $58.30 on 18th May 2021.
In August Solana price broke above the $75 line and on 9th September it reached a new all-time high of $214.
So, why is the Solana token cheap? And what is keeping its prices low?
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Why Is Solana (SOL) So Cheap?
Multiple factors have played a key role in pulling down Solana token prices and keeping them low. Chief among them is the crashing Bitcoin prices as a result of China’s emphasis on the crypto ban and Elon Musk’s criticism of its proof of stake consensus mechanism.
Solana is also cheap today because the demand for Solana cryptocurrencies is still relatively low. Note that while Solana is considered one of the most innovative and ranks highly among the most promising crypto technologies, its uptake by both developers and the corporate world has been quite low.
This implies that there hasn’t been enough demand to force a significant price charge. But the station is expected to change as the crypto industry matures and draws in the corporates.
Solana is just one of the many blockchain technologies looking to replace Ethereum as the dominant smart-contract capable platform. It faces stiff competition from the likes of Cardano, Polkadot, Chainlink, Stellar, EOS, and many others. Despite its high scalability, fast order processing, and low transaction fees, it has been forced to share the already small market share with the competitors, which means low adoption and low demand.
Nevertheless, most analysts and current SOL token investors are convinced that the situation will change soon and that SOL token prices will eventually rise.
Does this mean that you should be investing in Solana today?
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Should I Buy Solana (SOL) While It Is Still Cheap?
Everyone is looking for and incorporating lowly priced but highly promising crypto technologies into their portfolios today. It, therefore, is natural for you to want to buy Solana coins at the current price.
But is this a good idea?
Well, due to its massive scalability and hugely promising blockchain technology, Solana is expected to grow exponentially in the next few years. It will continue attracting developers and on-chain/off-chain brands who build different decentralized protocols on the platform, and their interaction with the network is bound to give SOL token prices a boost.
Crypto experts are, therefore, advising the investors to buy Solana and include it in their long-term investments basket. They are confident that SOL token prices have a high chance of reaching unimaginable heights in the future.
Is Solana Worth Buying?
Yes, because in slightly over a year, Solana has moved from an unknown crypto asset to the 7th largest cryptocurrency in the world. It has also ranked among the fastest-growing blockchain technologies and has also been described as one of the most promising crypto technologies.
All these say that Solana blockchain has massive potential for growth and that it will accumulating more market share and raising the token prices. SOL tokens are, therefore, worth buying today because they can set you up for massive profitability in the future when they eventually rise to these parabolic heights.
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Conclusion: Why Is Solana So Cheap?
Solana is cheap because the crypto market crashed and disrupted its uptrend. It also is and has remained relatively cheap because its adoption and acceptance have not been quick and because of the stiff competition it faces from other Ethereum killers. But the crypto market, current SOL token investors, and crypto market experts are convinced that the low price level is only temporal. That SOL token price will rise again, which makes the altcoin worth buying.
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