Aaryamann Shrivastava
FXStreet
- Solana price has risen by more than 141% since the beginning of 2023, while Bitcoin and other top altcoins have gained less than 65%.
- At the same time, Solana has emerged as the most decentralized chain, surpassing Ethereum, Polygon and others.
- While Ethereum as a chain has significantly more validators, the distributed staking on Solana has made it the most efficient PoS chain.
Solana price has managed to surprise investors with a stellar performance in the past nine months. The altcoin has not only surpassed every other major cryptocurrency in the world but also noted exceptional growth as a blockchain. This has resulted in Solana beating out Ethereum to become the most decentralized network.
Solana price takes the lead
Solana price has emerged as the best-performing cryptocurrency among the top 20 by market capitalization since the beginning of the year. Trading at a price of $23 at the time of writing, the altcoin has observed an increase of 141% from $10, the opening price on January 1, 2023.
To put this into perspective, Bitcoin, Ethereum, Ripple (XRP), Cardano and every other major cryptocurrency has fared below par. Of these assets, the most growth was noted by BTC, which is only 65% year-to-date.
Solana price performance year-to-date
However, the performance of Solana has been subliminal since peaking in July at $27. After declining by nearly 35.5%, SOL slipped to $17 but has since recovered by 29%. While Solana still stands almost 20% below the 2023 highs, it could likely make it back to the top, given the price movement over the past few weeks, as well as the performance of the network since the beginning of the year.
Solana is the best PoS chain
While the concept of Proof-of-Stake was pioneered by Ethereum, Solana has emerged as the one to make the best use of it. According to the Validator Health Report, the blockchain has eclipsed other major PoS players, namely Ethereum, Polygon, Avalanche, etc., to take the spot of the largest proof-of-stake networks by node count.
Not only this, Solana’s Nakamoto Coefficient of 31 is far above 27 and 25 of Avalanche and Ethereum, respectively. This coefficient is a measure of the minimum number of validators needed to agree to prevent a blockchain from operating correctly. The higher the coefficient is, the more decentralized a network is.
Solana network performance
Thus, Solana, as of September 2023, is the most decentralized network in the world. Such network development helps attract more retail and institutional investors as well as developers, fueling the blockchain's expansion. In the end, this would continue to improve the price performance of the native token (SOL).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.