Is Solana Poised For Another Breakout?
Is Solana Poised For Another Breakout?
Solana of SOL ticket has skyrocketed in popularity this year. Rising from just $2 at the start of this year and now being valued at $214 it's one of the largest success stories in the crypto space yet.
It goes to show you that a solid project with early investment can lead to amazing results. A simple $100 hodl investment in SOL a year ago would net you $10,000 today but not only that since it is a proof of stake token you could have been earning more SOL all that time with their delegated proof of stake system which would have netted you even more then $10,000 not bad from a simple $100 investment.
Solana is slated as the Ethereum "competitor" which I enjoy hearing much more then the killer lol. Solana does offer a lot of cool features that do put it ahead of Ethereum which Ethereum will be adopting later on. Till that time comes though Solana is positioned for more short term gains as more devs and projects launch on it.
One of these such projects is an investment from Grayscale. The Grayscale Solana trust is now available to eligible individual and institutional accredited investors. This is another vehicle for Solona to quickly increase its market cap from larger investors.
A Dim Look At 2022
Over the last 2 years during one of the worst economic impactful things ever called Covid Shutdowns it crushed the worlds global economy. This was only propped up with near zero interest rates and printing money and giving it away. We are FAR from returning back to normal and all of that injected money and inflation are a direct result of all of this such as new record highs for the stock market and crypto markets.
In 2022 however governments are looking to start tapering back and reducing inflation. As such that means the worlds in for what many fear including myself a huge crunch in the markets and money being given out to people. With no one really working, no interest rate to live off of and a global stagnate economy it's hard to see any other way for crypto and stocks but to be liquidated.
However there are a few things that lead me to thinking that wont be the case.
The first being I don't believe the government will lock up again or start to really cut back to reduce inflation. They might try and in doing so things will quickly tumble leaving behind some serious devastation of which I'm not even sure they would be able to recover from. Because of this I feel they might try and then quickly back off. A big part of that is because we are 2 years away from the 2024 elections and no president at this time is going to want to go for a long winter of markets it would destroy any hope of reelection. Yep, that's how shady and short termed these 4 year presidents are anymore and it's a cycle we constantly see as to why nothing really ever gets done anymore besides wasting money.
The second being I see the governments constantly printing money and at some point soon (within the next 3-5 years) releasing their own digital version which would only prop the crypto space even more showing that it has always been a viable solution.
What Solana has going for it
Super fast transactions at a fraction of the cost. This is something many cryptos do already so it's not the solution to building the best blockchain there has to be more!
Future projects - Audius is a decentralized blockchain based music streaming service that uses AUDIO token on the Solana blockchain. Currently pushes 5 million listeners as of 2021. This could pave the way for music artists as lockdowns loom and peoples fears of going out remain.
Other projects like Solend a lending platform or pretty much DeFi in general. A fast low cost chain for DeFi is needed. Binance is ok but let's be honest that place is plagued by a trash talking double faced owner whos word means nothing (at least to me) anymore.
NFT projects such as Degenerate Ape Academy. With a higher market cap comes developers and attention and Solana now has that going for it!
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