The SOLANA era

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18 Mar 2024

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SOLANA (SOL), a cryptocurrency that was designed to work similarly to and improve upon Ethereum. Named after a small Southern Californian coastal city, Solana is the brainchild of software developer Anatoly Yakovenko. First proposed by Yakovenko, this innovative 9blockchain in 2017, and Solana launched in March 2020. Today SOL has become popular crypto, ranking as the 11th largest coin by total market capitalization.(Forbes)

Dear investors,
Today we will be analysing the rise and need to have solana in this bull run and what it will become in the nearest future. The blockchain Solana is one which have risen fast due to so many facts that we will at below. But first let's look at what Solana is and its history.

What is solana

Solana is a blockchain with striking similarities to Ethereum—in fact, it’s often referred to as an “Ethereum killer.” Like Ethereum, the SOL token can be purchased on most major exchanges. The token’s real value is in conducting transactions on the Solana network, which has unique advantages.

The Solana blockchain uses a proof-of-history consensus mechanism. This algorithm uses timestamps to define the next block in Solana’s chain.

Most early cryptocurrencies, such as Bitcoin and Litecoin, use a proof-of-work algorithm to define the blocks in their chains. Proof of work uses a consensus mechanism that relies upon miners to determine what the next block will be.

History of SOLANA

Solana's origins date back to late 2017 when Anatoly Yakovenko published a whitepaper draft detailing a new timekeeping technique for distributed systems called Proof-of-History (PoH), a method to automate blockchain transaction ordering to deliver fast transaction speeds and settlement times. Anatoly teamed up with former Qualcomm colleague Greg Fitzgerald, and the two released the first internal testnet and project Whitepaper in February 2018. Another former Qualcomm cohort, Stephen Akridge, suggested that offloading signature verification to graphics processors could further increase transaction throughput (i.e., scalability). Anatoly recruited Greg, Stephen, and three others to start the company that would eventually become Solana Labs, Inc. The founding team initially named the project “Loom” but later rebranded to Solana to avoid confusion with the sidechain scaling solution, Loom Network.

Notably, Alan Yu was one of Solana Labs, Inc.’s Co-Founders. However, based on a commercially reasonable search, he is no longer involved with the entity.

Solana Labs, Inc. first raised funds between April 2018 and July 2019, accumulating over $20.00 million in various private token sales. The sales were announced as a single Series A in late July 2019. The fundraising effort ran parallel to Solana Labs, Inc.'s work on the network, which went through several permissioned testnet phases before the project team announced its publicly incentivized testnet, Tour de SOL, in Q3 2020.
Solana launched on Mainnet Beta in March 2020, shortly after raising $1.76 million in a public token auction hosted on CoinList. The project's beta network featured basic transaction capabilities and smart contract support but did not initially include staking rewards.

Other significant events in the protocol’s history include:

March 2021: Kreechures is the first NFT collection launched on Solana.
January 2022: Solana Pay is announced.
February 2022: Solana Riptide Hackathon launches.
March 2022: Solana NFTs are supported on OpenSea.
June 2022: Solana Mobile Stack (SMS) is announced.
November 2022: Google Cloud announces it is running a block-producing validator on Solana.
December 2022: Squads Protocol, a multi-signature standard on Solana, brought account abstraction to Solana.
April 2023: The Solana mobile phone, “Saga,” was released.
July 2023: Solana Labs launches Solang, a compiler that allows developers to write smart contracts on the Solana platform using Solidity.
August 2023 - Solana Pay integrates with Shopify, allowing merchants to accept USDC on Solana as payment.
September 2023 - Visa expands its settlement capabilities to Solana for stablecoin settlements.
October 2023 - Google Cloud introduces its Blockchain Node Engine for Solana.
December 2023 - The Saga mobile phone sold out worldwide.
December 2023 - Circle launched native support for the EURC stablecoin on Solana.

why is SOLANA rising

Let's look at the factors that has lead to rise in Solana over the years and why it might continue to grow in the crypto market.

1• Lower transaction fee: In the realm of NFTs, Solana's play is gaining ground over Ethereum, thanks to platforms like Solanart and Magic Eden, which offer lower transaction fees and faster processing times, making it more accessible for creators and collectors. The introduction of meme coins like BONK on Solana further exemplifies the network's versatility and appeal, capturing significant attention and trade volume, highlighting the community's enthusiasm for innovative projects on Solana.

2• Rich ecosystem of decentralized exchanges (DEXes): The DeFi sector on Solana showcases a rich ecosystem of decentralized exchanges (DEXes) such as Raydium and DEX aggregator Jupiter, which leverage Solana's high throughput and low latency to offer a seamless trading experience. These platforms facilitate a wide range of DeFi activities, from token swaps to liquidity provision, attracting users with their efficiency and lower transaction costs compared to their Ethereum counterparts. The success of these DEXes, alongside the proliferation of NFT marketplaces and the viral uptake of meme coins such as BONK, exemplifies Solana's capacity to host and support a diverse range of blockchain applications, setting a new benchmark for scalability and user engagement in the cryptocurrency space. Around 500 dApps have been built on the network so far, with the ecosystem consisting of over 2500 monthly active developers.

3• Bullish sentiment: The Bullish sentiment in the crypto market has played a crucial role. Leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have also reached yearly peaks, creating a favorable environment for altcoins like SOL.
4• Institutional interest: Institutional interest has significantly impacted SOL’s valuation. Recent research by CoinShares highlights inflows worth approximately $12 million into Solana over the last 14 days, indicating substantial institutional investment. This influx of institutional funds not only provides financial backing but also adds a layer of credibility and stability to the token.

5• psychological phenomenon known as the FOMO (Fear of Missing Out) effect. This effect often leads to impulsive buying and selling decisions among investors, driven by the fear of missing out on potential gains. Solana’s impressive price performance might have triggered this response, attracting more investors to its ecosystem.

Conclusion:

The factors that lead to the rise in the solana network will and can not only be attributed to just the affirmation factors. Solana is a blockchain that have fostered that rise of so many tokens. So many token have used the solana network to launch their token. With this factor alone, the solana network will not be falling anytime soon. Just take a look at this. Every new token under the solana blockchain network will require people engaging in those token to buy solana to swap to their token. For example superfans.tech ($FAN) token require you to stake $FAN which you have to mostly swap using solana or other tokens under the phantom wallet. So with this factor alone solana will continue to rise.