Rancakmedia.com – After facing network issues, the price of the Solana SOL has been dropping in value since early November. Ethereum's main competition in smart contracts, Non-Fungible Token (NFT), and web 3.0 is Solana, despite its status as the “new kid on the block.”
If Solana can overcome the technology challenges, it is poised to gain value for the foreseeable future, with some analysts projecting a value of $1000+ in 2023.
Everyone is eagerly anticipating the emergence of the next big crypto phenomenon. The Bitcoin and Ethereum charts are beacons of hope for investors who have been fueled by the euphoria surrounding cryptocurrencies.
Blockchain Solana SOL is the latest cryptocurrency project to experience the exponential rise of the famed crypto market, jumping in value from just $2 AUD on January 1st and reaching an all-time high of $350 AUD this November.
However, after suffering a series of technical attacks and network issues, SOL has shed 27 percent of its entire value in the previous 30 days (at the time of writing), now trading at $234 AUD. This is causing some investors to worry about whether Solana is strong enough to last into 2022.
So, what is Solana? Was it a smart idea to buy now? And what can we anticipate to happen in 2022 and beyond?
WHAT is Solana SOL?
As the 'Ethereum Killer' Anatoly Yakovenko created Solana in 2017 as the original token of the fast-growing blockchain network in 2021 after gaining well-earned fame.
Where the Ethereum network is slow and expensive, Solana is fast and cheap; providing crypto-enthusiasts with competitive options to build new apps, create NFTs, and develop new ventures in the fast-growing DeFi and web 3.0 realms.
Is There a Violation on Solana?
On December 10, the Solana network fell victim to its second major cyberattack in 3 months, which severely slowed down the network and raised concerns as to whether the blockchain it operates is safe for both developers and users.
The first major attack on Solana occurred on September 14, which rendered the network completely useless for 17 hours.
While the impact from the most recent attacks was not as serious as September's, it is still not a positive indication for the Solana network. According to Justin Bons, founder and CIO of Cyber Capital, the repeated attacks on the Solana network are the consequence of a severe design flaw in Solana's Proof of History (PoH) protocol.
As more and more investors begin to view SOL with a fair dose of mistrust, some cryptocurrency professionals have risen up to defend it.
What Do the Experts Say About Solana?
As Forbes states: Loan Venkatapen, co-founder of Blocklabs Capital Management commenting on the topic of security, claims that:
“Solana's long-term potential is unaffected. Ethereum during its early years also suffered from comparable vulnerabilities which have been largely fixed… What matters in these circumstances is not the problem but how the network can actually come together and provide a solution. This is exactly what we are seeing now with Solana.”
Kyle Samani, managing partner at crypto investment firm Multicoin notes that development activity and cash flows into the Solana blockchain are still growing at an astounding pace.
He went on to clarify that while Ethereum may not be “replaced” by Solana, it is quite clear that Solana will remain competitive in the future.