After hitting a high of nearly $3 trillion in November last year, the entire cryptocurrency market crashed. With many cryptocurrencies experiencing a downturn, some investors think this presents a buying opportunity. However, it is quite difficult to determine which coin has a bright future. That’s why analysts’ comments come to the fore. In this article, we will talk about an altcoin project on the rise of Neil Patel, one of the analysts of the consulting company The Motley Fool. Here are the details…
The consulting giant has this altcoin in focus
Patel begins his comments by stating that some projects have shown hope in the recent turmoil. He talks about solana (SOL) as a promising coin. As we reported as Kriptokoin.com, Solana’s native token SOL has dropped by 80 percent throughout 2022. However, according to the analyst, it is not impossible for the token to reach $ 500. SOL is trading around $33 at the time of writing. In other words, it is well below the $500 level pointed out by the analyst.
Founded by former Qualcomm engineers, Solana was launched in April 2020. Over the next 19 months, SOL hit an all-time high of $260 in November 2021. As of June 30, Solana was the ninth most valuable cryptocurrency with a market cap of $11 billion. What really made Solana special, according to the analyst, was the innovative consensus mechanism. The network works with a proof-of-stake algorithm. In addition, Solana also works with the proof of history algorithm. This feature places a timestamp on different blocks in the Blockchain to speed up the processing of transactions.
Solana can handle 50,000 transactions per second (TPS). So Solana is one of the fastest Blockchain networks. Also, Solana’s emphasis on speed and scalability from the start has made it an attractive blockchain for developers to build decentralized applications (dApps). As of now, Solana remains one of the fastest and cheapest networks out there.
Creating the most promising use case of crypto
For Solana to reach $500 per token, it would need to rise 15x compared to the price of $33. According to the analyst, this also needs to create real-world use cases. Fortunately, the network’s speed and low costs have made it an attractive blockchain for crypto’s most promising use case, decentralized finance, or a type of dApp known as DeFi. In particular, it entered the payments industry with the launch of Solana Pay. Solana Pay allows users to connect directly at checkout. This results in instant payouts and virtually no payouts.
On the other hand, many innovations can be added to the Solana Blockchain. For example, the digital relationship of the trader with the customer not only allows the implementation of loyalty programs, but also NFT can be included. While it is impossible to predict what will happen in crypto prices next year, the analyst thinks that in the long run cryptos will enter people’s lives. It does, however, give SOL a 10-year deadline to reach $500.
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