During this uncertain time, most cryptocurrencies observe an outflow, but Solana is one of the best-performing cryptocurrencies this year. The main reason for this popularity is the energy-efficient mining model, which attracts most crypto enthusiasts. During the Merge upgrade, many experts believed Proof of Stake-based cryptos is better than Proof of Work.
Now many investors think a Proof of Stake might sacrifice the decentralized models of crypto networks. Whatever the reason is, Solana has been outperforming many other cryptos because it has a unique consensus. Solana has combined Proof of Stake consensus with its Proof of History algorithms, which make the network more secure, scalable, and faster than many other crypto networks.
Do you know that miners first process higher-value transactions in the Proof of Work model? However, in this unique consensus of Solana, transactions are processed in order rather than the transaction amount. Considering the speed, Solana processes more than 40,000 transactions per second.
Solana can be one of the potential ‘Ethereum Killers’ because of its high-powered platform that is impressive and engaging for users. Besides regular payment systems, it has diversified use cases in NFT segments. Solonart is an NFT marketplace for investors where they have the ability to buy and sell popular NFTs.
In the last few years, it has gained market share in the NFT world due to its user-friendly system and lower fees. If you are bullish on the NFT space, you should consider Solana for the long term. But before that, make sure you read our SOL price prediction.
While writing, SOL was trading at $32.41. After taking support around $28, it was in the uptrend in June-August. After that, SOL changed its momentum in the last week of August; now, it is consolidating between $30 and $37.
Solana’s candle is forming around the baseline of the Bollinger Bands with RSI around 47, which suggests a consolidation phase for the short term. We can consider SOL long-term bearish if it breaks the support of $28.
After reaching an all-time high of $260.06, Solana has been on a downtrend. Now $30 will be strong support for the long term, but the weekly candlesticks are forming in the lower range of the BB with an RSI around 37, which does not suggest bullishness for the long term.
We can consider SOL as a long-term bullish when it crosses the strong resistance level. However, Solana is popular crypto, and it will provide a good return in the next few years, so you can accumulate some coins at this stage.