SOLANA NEWS, ANALYSIS AND FORECAST
Latest Solana News
Solana Technical overview
Latest Solana Analysis
Editors' picks
Altcoins in the lead: SPX, ICP, AB - Binance Alpha coins surge, ICP plans a trend reversal
The cryptocurrency market begins the week on a positive note with altcoins such as SPX6900 (SPX), Internet Computer (ICP), and AB (AB) leading the gains on Monday, at press time.
Gemini hints at IPO following confidential filing with SEC
Gemini filed a confidential statement with the Securities & Exchange Commission (SEC) on Friday for an initial public offering (IPO) of its Class A common stock.
Ethereum Price Forecast: ETH tests key resistance amid rising exchange inflows
Ethereum (ETH) is trading just below $2,500 on Friday as investors exerted net selling pressure of 117,000 ETH across crypto exchanges following the Trump-Musk clash.
Ripple Price Prediction: XRP offers multiple buy signals targeting $2.50
Ripple (XRP) edges higher after a broader flash sell-off on Thursday, which saw the crypto market capitalization drop 4% to $3.4 trillion. XRP has recovered to trade at around $2.17 at the time of writing on Friday after dropping 9% on Thursday.
Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.
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What is Solana?
Solana is a blockchain network that leverages novel techniques to host decentralized applications and crypto tokens.
Proposed in 2017 by Anatoly Yakovenko, Solana is home to hundreds of applications across decentralized finance (DeFi), GameFi, SocialFi and non-fungible tokens (NFTs) protocols.
Solana's uniqueness comes from its ability to process a large number of transactions at low fees – thanks to its Proof-of-History (PoH) and Proof-of-Stake (PoS) consensus mechanisms.
PoH works by cryptographically generating publicly verifiable proofs of the passage time between events in a blockchain network, making it difficult for bad actors to tamper with a network's timestamp.
PoS, on the other hand, leverages a system where users put their coins at stake to validate transactions. The system rewards users with cryptocurrency rewards and punishes bad behavior by slashing their staked coins.
With the combination of both PoS and PoH consensus systems, Solana can theoretically process up to 710,000 transactions per second.
Its native cryptocurrency, also named Solana (SOL), is central to this consensus process. SOL is used for paying transaction fees on the network and ranks as the sixth-largest crypto asset by market capitalization as of December 30, 2024.
Non-fungible tokens and several cryptocurrencies, known as Solana Program Library (SPL) tokens, also run on the Solana blockchain.
Solana has also become a prominent platform for launching meme coins in recent times due to its high throughput and low fees.
Solana wallets
Solana wallets allow you to interact with the Solana blockchain network and the various applications that run on top of it, as well as manage SOL tokens, SPL tokens and NFTs.
Most Solana wallets are specifically designed to process only Solana-based transactions, except when a user decides to use a multi-coin wallet.
- Web wallets: This type of wallet allows users to store, send and receive Solana-based assets while enabling access to decentralized applications. Web wallets manage users' private/public keys through browser extensions or mobile applications.
- Hardware wallets: These are physical devices that enable users to manage their Solana private keys offline. Unlike web wallets, hardware wallets do not have internet connectivity unless connected to a computer.
- Exchange Wallets: These wallets are automatically created on behalf of users who use cryptocurrency exchanges. The user doesn't have to worry about managing their private keys as the exchange manages the entire process. However, exchange wallets are often criticized due to their centralized nature and risk of susceptibility to hacks.
Best cryptocurrency exchanges to buy Solana
There are several factors to consider before choosing an exchange to buy cryptocurrencies. With hundreds of exchanges available, selecting one that aligns with your trading or investing preferences is important.
However, before exploring the product suites of a crypto exchange, investors should ensure that it legally operates within their locality. It's not advisable to trade on unregulated exchanges due to the risks associated with their platforms. In certain countries, trading on an unregulated exchange could attract a penalty on the user. In the United States, the body that regulates exchanges is the Securities & Exchange Commission (SEC).
Crypto exchanges are divided into two major categories – centralized and decentralized exchanges.
Centralized crypto exchanges are platforms that operate under the supervision of a third party. This means that a central authority oversees the actions of every user on the exchange.
Decentralized exchanges operate without the involvement of third-party intermediaries. These exchanges use smart contracts known as automated market makers (AMMs) to manage trades between users.
Another factor to consider when choosing an exchange is its interface. Typically, newer investors are advised to select exchanges with simple features for easy navigation. Most popular exchanges often offer simpler services to new users to avoid unnecessary complexities while using the platform.
Investors may also consider factors such as an exchange's asset range, deposit-withdrawal options, on-off ramp solutions and security measures.
Furthermore, it's advisable to consult prominent review websites before choosing an exchange, as poor reviews are a potential red flag.