Solana is one of the leading Crypto in the market these days. While Wealth Matrix is increasing its traders since its start in 2019, it has been raising around 335 million dollars from the capital firms. Also, the token of Solana is capturing more share in the market and the investors are investing more in it.
If you are thinking about investing in this digital currency, make sure you know certain factors before reaching any conclusion. Without looking into these aspects, or having a proper idea, you should not invest your capital in this digital currency.
Things to remember before buying Solana
There are several factors that you need to learn before investing any amount in this digital asset. These factors are:
- Killer of Ethereum:
Ethereum is also one of the most popular Crypto these days and it is a foremost project of Blockchain. It is one of the popular platforms for the developers of this technology. Also, the developers are using Ethereum as the base for building other famous outlets in this market like Aave and Uniswap.
But, this digital currency is also among the most inefficient coins. The application which is built using this coin has a very slow speed and costs are high at the same time. To remove this limitation, Solana is trying to become a better platform. The applications which are built with the help of Solana are fast and costs are less.
Ethereum is capable of handling around 20 transactions in a second. But, at the same time, Solana can handle around 2000 transactions, which is a very large amount. In this way, Solana is killing Ethereum from the competition.
- Growing Ecosystem:
As the platform developers are searching for substitutes for Ethereum, the ecosystem of this coin is growing. The network that the experts are developing on Solana is increasing over time.
For various kinds of apps, the experts use this digital currency for development. And, so it has its position as the fifth-largest platform in this Crypto market.
- Strong Competition:
Solana is also facing very high competition. If you are looking forward to investing in this coin, you need to learn that Solana is a better substitute for Ethereum. And the developers are choosing this coin over the others, so it is facing high competition.
This digital currency is facing challenges from the new coins like Terra, Tron, and similar others. Several of these new coins work faster than Solana. Also, the experts are working to make Ethereum better and so they are building it with new technology.
These factors are giving strong competition to Solana in the coming times.
- Uncertainty in the future:
This coin is one of the most popular coins among investors and developers for some years now. Solana has a high amount of capital worth.
But, this coin is facing competition and has been slowing down to a certain extent. These factors are making the future growth of this coin full of uncertainty. The growth of Solana will depend on how its developers keep up with bringing new technology and development.
- Slow TVL:
We know that this coin is not under any regulation, but the truth is that Solana uses various platforms which are under regulation to function, like Amazon. The applications which the developers host in the ecosystem of this coin will face the influence.
In the preceding years, there are cases of around six outages, which is the most for such a decentralized market. Due to this, many experts are using other platforms to develop their apps. The number of stakes is decreasing at the same time.
The market of Cryptocurrency is full of uncertainty. Though Solana has been on the rising trend in recent times, and also it seems like a good substitute for Ethereum. But, this digital currency has its disadvantages. It is facing very high competition from new coins and also the TVL of this technology is slowing down.
Owing to these factors, we can see that the future of this coin is uncertain and you cannot have an assurance that it will perform well in the coming times. Also, the factor that you will earn a profit is not sure. So, if you want to make a good investment decision, look for these factors and then think about what you should do.