Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
It’s been a month since the rise in cryptocurrency prices began due to speculation around exchange-traded funds (ETFs). Solana (SOL) has achieved one of the most remarkable price gains among all cryptocurrencies during the ongoing bull run.
Since mid-October, the price of SOL has jumped more than 160%. It was trading at $57.86 at press time.
We have recently witnessed large scale whale activity. On November 12, for example, Whale Alert reported two large Solana transactions, each exceeding $30 million.
The first transaction implied the transfer of 325,222 SOL, valued at more than $18.6 million, to Binance. The second transfer consisted of 199,998 tokens, worth over $11.5 million, sent to Coinbase exchange.
Clearly, the token is a major player in the cryptocurrency market, attracting a large number of investors. That is why AMBCrypto examined Solana’s price fortunes in the past too.
How it all began… Solana’s journey
Solana co-founder Anatoly Yakovenko published a white paper in late 2017, describing the Proof of History (PoH) consensus mechanism.
Solana has combined both PoH and Proof of Stake (PoS) on its blockchain project. It is essential at this point that we understand what these two mechanisms
PoH is a proof to verify the order and passage of time between events, and is used to encode the passage of time without trust in a ledger. PoS requires validators to stake some of their coins as collateral. The network then chooses a validator at random to construct a new block based on stake size and other parameters.
Built by San Francisco-based Solana Labs, Solana launched in 2017. The open-source blockchain project is currently managed by the Geneva-based Solana Foundation.
The disruptive “Ethereum killer”
The launch of Solana was a major disruptor in the crypto industry as it challenged the dominance of Ethereum (ETH). So much so that it became known as the “Ethereum Killer”.
Much of the buzz around Solana was due to its distinct advantage over Ethereum in transaction processing speed and transaction costs. Solana can process up to 50,000 transactions per second (TPS) and its average cost per transaction is $0.00025. In contrast, Ethereum can only handle less than 15 TPS, while the average transaction fee is around $1.68.
As a result, the blockchain network has integrated a large number of enthusiasts.
According to on-chain analyst Patrick Scott, Solana’s DEX volume has skyrocketed in recent days. He also discussed Total Value Locked (TVL) recovery.
DEX volume on Solana has been exploding in recent days.
Importantly, Solana’s volume over the past 24 hours has been nearly 3x its total DEX TVL ($424 million vs. $153 million). In comparison, other major channels have less 24-hour volume than TVL.
High volume/TVL should drive up fees,… pic.twitter.com/6Q0XkQsmvU
—Patrick Scott | Dynamo DeFi (@Dynamo_Patrick) November 3, 2023
Ryan Sean Adams, co-founder of the Bankless VC fund, meanwhile criticized its relatively smaller TVL compared to other L2 blockchains.
But Helios CEO Mert Mumtaz quickly dismissed Adam’s advice. Mumtaz said TVL was a “noisy” measure. He also highlighted that SOL has easily outperformed Ethereum when it comes to TPS.
Ryan, you have absolutely no idea what you’re doing lol
TVL and active addresses are noisy and easy metrics to game, especially in the context of people operating L2 airdrops.
Solana makes more GST than everyone combined while being 100x cheaper and having a much bigger community
—mert | helius.dev (@0xMert_) November 3, 2023
Read Solana (SOL) Price Prediction 2023-24
Has Solana managed to contain its breakdowns??
However, the network was notorious for outages. But the team has been working to resolve this ongoing issue. The team claims in July for not having suffered any outages since February.
FYI, there is a $400,000 reward for anyone who can find a code to disable Solana.
Please go ahead and find ithttps://t.co/2oxcB0EEyx
-Jacob Creech (@jacobvcreech) October 12, 2023
Is Solana a security?
Even though Solana is touted as the “Ethereum killer,” Yakovenko seemed to be on board with the idea of using Ethereum as the L2 blockchain for Solana.
Could it be possible that Ethereum is a @solana L2? Probably more likely than you might think at first glance. L2s are bridging protocols that provide one-way security. In this configuration, holders of solana assets on Ethereum would have the definitive guarantee that they can leave… https://t.co/XE5ETsxGIW
— toly 🇺🇸 (@aeyakovenko) July 2, 2023
Even Ethereum founder Vitalik Buterin is an admirer of Solana. When the United States Securities and Exchange Commission (SEC) filed a lawsuit Binance And Coinbase In early June, he labeled several altcoins, including SOL, as securities.
Buterin deplored the way the regulator targeted projects like Solana.
The only comment I will make is that I feel bad @solana and other projects are affected in this way. They don’t deserve it, and if Ethereum ends up “winning” thanks to all the other blockchains having exchanges thrown at them, it’s not an honorable way to win, and in the long term…
– vitalik.eth (@VitalikButerin) June 30, 2023
At this point, we decided it was a good time to ask ChatGPT about the different aspects of Solana. ChatGPT has proven valuable for traders and analysts.
At first, ChatGPT was unable to provide any details. So I decided to educate him and jailbreak him.
I asked ChatGPT if he thought the court would overturn the SEC’s decision to classify Solana as a security.
While the classic version refused to comment on the subject, the jailbroken version gave a rather speculative answer.
A look at Solana price action
Solana became one of the most popular cryptocurrencies within a few years of its launch. In November 2021, it reached an all-time high (ATH) of $250. Its market capitalization has also reached an ATH of $75 billion, making it the fifth largest cryptocurrency.
But last year’s bloodbath caused SOL to fall all the way to $10 in December 2022. It’s November 2022 that FTX (FTT), Sam Bankman-Fried’s monstrously huge blockchain project “SBF”, collapsed and filed for bankruptcy in the USA
Remember that SBF was one of the staunchest defenders of the Solana network. The community considered him a credible and intelligent entrepreneur who ran one of the largest crypto exchanges in the world.
The Solana Foundation had sold a significant amount of SOL tokens to FTX and Alameda Research. This represented 58.08 million SOL, or 11% of the circulating supply at the time FTX filed for bankruptcy. The total value of these tokens was then estimated at $1.1 billion.
Earlier this month, the court announcement its final judgment in the case against SBF, finding him guilty on all seven counts. The judge set the sentencing date for March 28, 2024; SBF could face a maximum sentence of 115 years.
Solana’s reputation took a hit during the episode. But a lot has changed since then.
During the recent bull run, its price surged over 160% in one month to $57.86 at press time.
However, both SOL The Relative Strength Index (RSI) and Money Flow Index (MFI) have held below the neutral level of 50. It appears that the price rise will not last long, as these chart indicators suggest.
However, the overwhelming majority of opinions are in favor of a further price increase for Solana.
Ask ChatGPT about Solana price trends
We decided to ask ChatGPT for their views on future Solana pricing trends. ChatGPT is a remarkable AI chatbot that has proven to be a powerful tool for learning on a wide range of topics. Yet we must remember that the robot is designed to imitate a human and is not necessarily guaranteed to be factually accurate.
And yet, it is possible to get guesses from the chatbot about what the future might hold if we provide it with details about recent price movements.
We asked ChatGPT to predict the price of Solana towards the end of the year.
Solana could potentially reach a bumper price of $500 by the end of December 2023, ChatGPT predicts. An 8x increase in its price within two months seems very unlikely.
We then asked ChatGPT to predict the Solana cryptocurrency by the end of 2024. As usual, its classic version did not request any response.
But the jailbroken version predicted that the price of SOL would reach $1,000 by December 2024.
I guess the robot was already assuming that its earlier prediction of $500 in December 2023 would indeed come true. He subsequently expected SOL to rise further to $1,000.
Is your wallet green? Check SOL Profit Calculator
ChatGPT predicts an overly positive performance for Solana in 2023 and 2024. It expects SOL to reach $1,000 by December 2024. However, its measurements on the chart were rather modest.
Traders are advised to do their own research before investing in any cryptoasset.