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Brian
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Solana A $SOL #deepdive Updates and Price Analysis In October 2020, Circle partnered with Solana to launch its USDC stablecoin on the Solana blockchain. USD Coin ( USDC ) went live on the Solana network in early 2021 with now over 470 million USDC currently on its blockchain. Days later, Audius announced that it would be moving their decentralized streaming protocol from Ethereum ( $ETH ) to Solana ( $SOL ). In November 2020, SOL announced the winners of their first “Hackathon”. This included DAPPS (decentralized applications) for p2p messaging, fantasy sports, DeFi protocol clones, blockchain fee delegation, and a fighting game called “SOL survivor”. The Solana foundation also announced the recipients of the first wave of developer grants of which included a Chainlink ( $LINK ) and Ren ( $REN ) integration, bridges to Cosmos-based ( ATOM ) blockchains like Terra ( $LUNA ), a browser extension wallet for Solana, and a MetaMask integration. In December 2020, the Solana network went down for nearly 6 hours. According to the Solana team, this was the result of a previously known issue in the block repair and processing code. Afterwards, Solana announced that they partnered with Arweave ( AR ) to store blockchain data. This is important to note because Solana had initially intended to store data on its own blockchain. At the end of 2020 there were around 100 projects building on Solana assisted by a network of 350 validators, processing transactions from over 5 million wallet addresses. In February 2021, the Graph ( GRT ) added support for the Solana blockchain, also the Center Consortium announced that Solana would be the official chain for USD coin ( USDC ). In March 2021, SushiSwap DEX ( $SUSHI ) and Tether ( USDT ) went live on the Solana blockchain. At the end of March, Solana received $40 million USD in funding from cryptocurrency DEX’s OKEx and MXC. In September 2021, the Solana network went down for a second time (17 hours). This was caused by a DDOS attack that launched over 400,000 transactions to the Solana blockchain at the same time, crashing the network. This resulted in a minor (-10%) decline in SOL’s price. Most recently the Brave browser announced that it will integrate with Solana into its browser which will take place in 2022. This integration has the potential to create new demand thereby increasing the price of Basic Attention Token ( $BAT ). There are now over 400 projects building on Solana, this is a 4x from the start of the year. This exponential growth is obvious when looking at the price chart. SOL has had more than a 120x when compared to the start of the year. This is actually somewhat surprising considering the aggressive vesting schedule of SOL’s initial supply. Anatoly Yakavenko was asked about this aggressive vesting schedule in an interview in November 2020, but I wasn’t able to find his answer. A possible reason for this “HODL” is because of the staking rewards. Please allow me to explain. Validators were only earning rewards from the community reserve until inflation was enabled in February. SOL’s vesting schedule indicates that these reserve rewards were substantial and it’s possibly still ongoing even though validators are earning inflationary rewards as well. If this assumption is correct this would explain why the sudden unlocking of SOL in January didn’t tank SOL’s price. Furthermore this is supported by Solana explorer’s staking statistics, but also conflicts with SOL’s vesting schedule. When looking at SOL’s largest wallets it seems that SOL is fairly equitably distributed. Although, there has been some clear selling since the circulating supply SOL is almost 10x higher than previously in Fall 2020. Final thoughts / Conclusions Anatoly has very specialized knowledge, with a focus on practice, and seems to be very involved in Solana’s development. He also has a lot of connections in the cryptocurrency space. There are seemingly countless interviews with other founders that say they’ve worked with Anatoly or the Solana team. ex. Helium ( HNT ) Another important note is that Anatoly’s connections have made Solana very interoperable with other crypto projects. Considering that interoperability is critical to the future of cryptocurrency, this will be vital for the future of Solana. Solana has deflationary potential due to its partial fee burns. Less supply with the same or greater demand usually translates to a higher price. Although, this might be limited because of SOL’s large market cap (currently $69 billion USD). Solana also has had massive institutional adoption. Projects built on Solana because of FTX and Alameda Research create demand for SOL at both the retail and institutional level. Again, this usually translates to a higher price. Sources - https://solana.com/solana-whitepaper.pdf - https://solana.com/community?gclid=CjwKCAiAp8iMBhAqEiwAJb94zx3qy4_qE7M5RznR5bL2lUlpvQ1AC0mYBWnmrKQFQIgWGY7hEDTdbBoCUGsQAvD_BwE - https://coinmarketcap.com/ - https://youtube.com/c/CoinBureau Not financial advice. DYOR. DCA. BTD. HODL. #unbankyourself #crypto #cryptocurrency #sol #solana #bitcoin #ethereum #avalanche #algo #matic #public #publiccommunity #longterm #growth #learningtoinvest #learningaboutcrypto #possibilities #tech #technology #dyor #dca #btd #hodl #link #ren #luna #shib #doge
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