As the saying goes, one day in the cryptocurrency world is like three years in the real world. Compared with the traditional financial market, one of the biggest characteristics of the cryptocurrency market is that there are always talented people emerging from generation to generation. In addition to the two major mainstream currencies, Bitcoin (BTC) and Ethereum (ETH), which have always stood firm, new star currencies emerge almost every year to replace the old value coins.

So, why can the once glorious SOL shine among many public chains? Will SOL be the next Ethereum? This article will explore it with you.

SOL Introduction/Features

SOL is the native token of the public chain Solana, which corresponds to the relationship between BTC and Bitcoin, ETH and Ethereum, and ADA and Cardano. The former is a coin and the latter is a chain. Similar to the functions of most native tokens, SOL can mainly be used as gas. In addition, users can use SOL for transfers, pledge mining, liquidity mining, proposals and voting, etc.

Technically, SOL coin/Solana uses a relatively special "Proxy Proof of Stake (DPoS) + Proof of History (PoH)" hybrid mechanism.

This helps Solana transaction fees to be very low, averaging only $0.002, while Ethereum and Bitcoin require about $8 and $15 respectively. However, despite boasting a transaction throughput per second (TPS) of up to 60,000, due to the obvious centralization of nodes, its actual processing efficiency will drop significantly during special periods, and even downtime has occurred many times.

Another notable feature of SOL is the manipulated nature of the currency price itself. As a direct descendant of SBF, there are obvious signs of financial pushers and traders behind its last round of soaring prices. After the SBF era came to an end, SOL also followed it with a sharp plunge.

Advantages of SOL

The main advantages of SOL coin are its speed and encryption technology. Compared with the high transaction fees and slow speed of Ethereum, SOL coin can achieve ultra-high-speed transaction processing while maintaining low transaction fees. In addition, SOL coin also uses a data structure-Tree Graph that is dynamically modified according to the system memory to improve the throughput and processing speed of the blockchain.

Disadvantages of SOL

The disadvantages of SOL coin are that it has a relatively short market life and the community is not large enough. Although SOL coin has advantages in transaction speed and fees, it will take some time to gain more support and trust from users due to its short market life. In addition, the developer team that developed SOL coin is relatively small and needs more contributions and investment to expand its ecosystem.

How SOL differs from Ethereum

In addition to the differences in transaction speed and fees mentioned above, SOL coin has other differences from Ethereum. SOL coin uses the Rust-based SOLANA protocol, which makes it more scalable and has a wider range of application scenarios. On the other hand, Ethereum can develop decentralized applications through smart contracts and can also achieve more advanced functions such as governance and identity authentication.

Will SOL be the next Ethereum?

In general, SOL is an emerging digital currency that has its own advantages and disadvantages and differences from Ethereum in different aspects. Although SOL has greater advantages in transaction speed and fees, it has not yet reached the same scale and market recognition as Ethereum. Therefore, SOL has the potential to become one of the next Ethereum, but it still needs more investment and support in the development process, and needs to increase the community size and practicality so that more people can understand it and use it.

SOL latest price analysis: approaching $50, SOL sends a strong “buy” signal!

As Bitcoin surges above the short-term barrier of $35,000, the altcoin market is flooded with buyers ready to pay a premium as sentiment improves. SOL is one of the best performing altcoins of the week, with its price trend having surpassed the $40 mark and continuing to maintain strong momentum.

With a stunning breakout rally that has overcome multiple resistance levels and is approaching the next psychological level of $50. With a 62% gain in October, Uptober sentiment is high for altcoins and the Solana price prediction maintains a bullish stance for 2023.

The SOL price trend shows a sharp reversal of momentum following a bullish breakout of a rounding bottom pattern. With a breakout of the $27.5 area, Solana price surged along with the overall market’s moonshot rally.

Moreover, Solana easily broke through the overhead resistance and hit a new 14-month high at $46.97. High-velocity bull run with volume candles creating new skyscrapers, underlying demand is rising.

Currently, SOL price is trading at $42.07 as sellers rejected higher prices at $47, resulting in a brief pullback. Nonetheless, the intraday gain of 2.16% shows a bullish candle, reflecting the persistence of buying pressure.

Technical indicators:

EMA: The increase in trend momentum has fueled a positive recovery at the 50-DMA and has widened the bullish gap with the 200-DMA. The positive correction and bullish trajectory of the key EMAs reflects an upcoming optimistic trend in the SOL price.

MACD Indicator: MACD and signal lines continue to move higher by avoiding a crossover and the histogram surges again. Momentum indicators reflect strong buying pressure that can sustain the bull run.

Factors Affecting SOL

Whether the ecosystem is hot and the participation of ordinary participants is one of the core factors in measuring the price of public chain tokens. According to data, there are more than 180 decentralized applications (DApps) on the Solana chain, covering decentralized finance (DeFi), NFT, games and other fields. Solana's TVL reached US$275 million, ranking tenth among all public chains. There are 108 application protocols, ranking ninth.

At first glance, it seems to be ideal, but there are still many doubts after a closer look. First of all, in DApp, Solana's popular protocols have fallen from highs and seem to be tepid. The highest TVL of its top ten protocols is only 150.41M, and the rest are basically below 50M. This data is far lower than the data of L2 Arbitrum, which was launched on the mainnet this year, and the gap with the data of Ethereum and BSC, which were born earlier, is even greater.

Secondly, due to the weak short effect of Solana, new users in the cryptocurrency circle basically do not pay much attention to this semi-old public chain, which leads to the inability to increase the number of users. The data of 24-hour active users is around 85,000, which is only better than Avalanche among the mainstream public chains.

In addition to the poor ecological fundamentals, the continued damage caused by the SBF incident cannot be underestimated. As a product that was supported and launched by SBF, after the biggest investor got into trouble, the participation of external funds in the entire project has become increasingly sluggish. In several heavyweight financing projects in 2023, the Solana protocol was not seen.

Of course, as a product that is still among the top ten in terms of market capitalization, SOL can naturally enjoy the influence of the general environment of the currency circle. Because the BTC halving effect in 2024 is deeply rooted in the hearts of the people. Therefore, the opportunity for a subsequent weak rebound with the help of other mainstream currencies cannot be ignored.

Everyone, please move your hands and pay attention~

Thank you for your support, see you next time!