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- 1 Solana (SOL), is one of the fastest-growing cryptocurrency and blockchain networks offering more transactions per second with lower transaction fees.
- 2 The digital asset is well known for its scalability and speed and allows users to mint and trade digital currency more efficiently.
Solana is among the few protocols offering around 1000 transactions per second due to its web-scale blockchain features. The protocol was launched in May 2020, with the purpose to support smart contracts and decentralized apps in specific. The speed, security, and scalability features make the platform unique and more efficient than other platforms. Also, growing interest in NFTs made Solana more popular in the crypto marketplace.
Let’s take a look at the performance of Solana in the past three months.
Performance Analysis of Solana
Solana from the date of launch, experienced many ups and downs in terms of performance, transactions, supply, active wallets, and new NFTs generation.
The total SOL supply at present is around 553 Million and the all-time transactions are approximately 200 Million.
Focusing on the past 3 months, a huge upsurge is experienced in the total transactions per second (TPS) from 3370.91 to 7785.3, which is an increase of 130.955%.
The data shows that the platform is offering higher payment efficiency and better congestion management attracting more and more users towards Solana. The platform is capable of handling a high volume of transactions simultaneously making it one of the most reliable platforms in terms of speed.
The network fee is another factor that comes into consideration while making any transaction and relates to any fee charged by the network to avail the services. In the last 3 months, a huge decline was measured in the network fee over the Solana platform.
On 12 May 2023, the network fee was around 216.37 SOL which fell to 34.49 SOL on 25 July 2023, a rapid decline of approximately 85% is observed.
Also, the platform has a total of 9,154,449 wallets as of January 2023 holding SOL and experiencing a decline in the number of active wallets from May to the present. In May, the total count for active wallets was 571,684 and fell to 288,706 on July 25. Around 60% of the decline is observed in the active wallets showing less engagement of the users with the Solana platform.
Apart from this, one more feature that affects the current performance of Solana is the new NFTs generation. A sudden decline is heeded in new NFTs from 19,030 in April to 3,667 in July.
Current State and Future Predictions
The current volume of SOL is $25.12 with a current market cap of 10.076 Billion and a total volume of 731 Million in the past 24 hours. SOL is predicted to hike up to $56.07 by the end of 2025 and is assumed to cross $157.30 in the next 5 years, making SOL a good currency to invest in.
Conclusion
Solana was introduced in the crypto market with the purpose to mitigate the challenges related to scalability and speed. The decline in active wallets and new NFTs somehow influenced the current performance of Solana, but the future price predictions offered an effective and strong position for SOL on the crypto landscape.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
