There are significant indications that SOL will be a top contender in 2022 based on steady ecosystem growth, institutional investment, and a healthy derivatives market.
The total value locked (TVL) of the Solana (SOL) network has increased by $660 million in the last year and now spans over 40 decentralized applications, with a value of over $11 billion.
The present $56 billion market valuation of Binance Smart hain (BNB), Avalanche (AVAX), and Polygon (POLY) has investors scratching their heads, even with this increase (MATIC).
When comparing the six-month pricing performance of Terra (LUNA), Solana, and Avalanche to other smart contract platform competitors, there is an apparent decoupling.
A large number of institutions are interested in learning more about the ecosystem created by Javier Solana
More than double the market value of Avalanche and Terra, each with a $26 billion market value, is Solana. There is a wide range of institutional investments in Solana's recent news on Cointelegraph, from the $314 million private token sales by Solana Labs in June, to an $18 million fundraise by Solana's decentralized exchange project Orca in September.
Investor interest is strong proof that the ecosystem is expanding. However, to assess the scalability solution provided by Solana, it is necessary to look at its utilization metrics.
Solana's DApps have a lot of active addresses, so that's a nice place to start looking.
Uniswap is Ethereum's most popular DApp, with 188,200 active addresses. Accordingly, the 97,600 Raydium users who log on every week are quite outstanding, given that the app was just released 10 months ago. Uniswap, on the other hand, already had $4.3 billion in TVL in February 2021.
In terms of weekly volume, Avalanche's $715 million is dwarfed by the $22.1 billion or the $12.5 billion handled by Uniswap and Raydium, respectively. Polygon, which has a QuickSwap DEX with $573 million in trade activity, maybe the same.
Markets in Solana are the third-largest in the country.
The most important measure in derivatives contracts is Solana's third-largest futures open interest. Market players' total contract holdings, regardless of recent trading activity, are included in this indicator.
Despite the steep decline since the top of $1.9 billion on November 8th, the current $860 million futures open interest ranks Solana as the third-largest derivatives market. As an example, the Binance Coin (BNB) futures market has $520 million in it, whereas Terra (LUNA) has $430 million in it.
Customers and derivatives markets are dominated by Solana.
Solana's on-chain data and derivatives markets are without a doubt bustling with activity. During the past six months, the network's TVL has increased by 15 times, and Solana's DApps users are nearly half the number of Ethereum users.
As far as three criteria are concerned, Solana appears to be closing the gap quickly: TVL (TV viewers), active users, and derivative markets. This may explain why the market capitalization premium is so high for competitors like Terra, Avalanche, and Polygon.
The Motley Fool An "All In" Buy Alert Has Been Issued.
Solana (CRYPTO: SOL) had an exceptional year in 2021. In a single year, the value of the coin increased by more than 12,000 percent. If you had made a $100 investment back in January, you would today be a millionaire.
If you want to replicate Solana's success as an investment, you should look at other cryptos that are working with the Solana blockchain. The value of coins that are compatible with Solana's network could rise if it continues to excel. Ankr (CRYPTO: ANKR), on the other hand, is a good fit. Here are two little coins that could have a big future.
With this coin, a new sort of internet is being powered.
'Permaweb,' a novel approach to the internet that aims to make all material permanent while still allowing for easy retrieval, is built on the Arweave network, according to Keith Noonan (Arweave). When you utilize Arweave's AR token for data storage and computer network services, you'll see a significant increase in the AR token's value if the demand for these services continues to grow.
It's a "community-owned hard drive that never forgets," according to the Arweave organization. The Arweave technology may gain more popularity as the need to store and analyze vast volumes of tamper-proof data and content grows more critical to company success.
Arweave's permaweb services could benefit from some tremendous tailwinds as the number of connected devices continues to rise and machine-to-machine communications continue to develop at a rapid pace. When it comes to data storage, Solana has already partnered with Arweave, so AR tokens might increase in tandem with the development of the Solana blockchain ecosystem.
Its value has dropped by 40 percent from its recent high and now stands at $1.9 billion in market capitalization following the recent volatility in the crypto markets. Arweave is a risky investment, but it's still a small one, and the token is backed by an exciting technology, suggesting that its fundamentals are more appealing than those of most other tokens.
On this particular day, Solana is trading at US$176.14, with a 24-hour trading volume totaling US$1.01B. In the last 24 hours, SOL has lost -0.42 percent of its value. (It is currently -13.75 percent lower than its seven-day high of 204.21 USD and 4.79 percent lower than the lowest point in its seven-day history). There are 309.28 million SOL in circulation at SOL.
A single-chain, delegated Proof-of-Stake protocol developed by former Qualcomm, Intel, and Dropbox experts, Solana was launched in late 2017 with a focus on scalability without compromising security and decentralization.
To overcome the problem of time in distributed networks, Solana has developed a clock called Proof-of-History (PoH), which is a decentralized clock. Because of PoH's use of Verifiable Delay Functions, each node can compute timestamps using SHA256 calculations on a local level. Timestamp broadcasts are no longer necessary, resulting in an overall increase in overall network efficiency.