Is Solana a Good Investment in 2022?

Solana has been the best performing crypto in 2021 and might continue to grow beyond expectations in the future, Explore Now:

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Pros of Solana

Fast transactions and low fees.

Crypto enthusiasts believe that Solana is Ethereum’s biggest rival. ETH can currently process 14 transactions per second (TPS), whereas SOL can support 50,000 TPS.

PROS

Solana has the third-largest futures market.

Solana currently owns the third-largest futures open interest, which is the most relevant metric in derivatives contracts.

PROS

NFTs and smart contracts.

NFT industry has gone wild over the last year. The non-fungible tokens became a high-growth industry opportunity followed by epic sales hosted by eminent digital artists.

PROS

Solana leads in TVL, users, and derivatives market.

Undoubtedly, there has been an incredible amount of activity going on in Solana's on-chain data and derivatives market.

PROS

There is a strong institutional attraction for SOL’s ecosystem

Solana’s market cap is more than the doubled value of Avalanche and Terra.

PROS

Cons of Solana

Solana is not decentralized enough.

ETH network has over 200,000 validators, but the Solana network only has 1000 validators to date. The more the number of validators, the more secure the network.

CONS

Fewer projects.

Ethereum’s first-mover advantage means that the network has more projects than Solana. SOL claims to have about 350 projects on its network, including decentralized finance, etc.

CONS

Inflation.

Most digital currencies have a hard cap on how many coins will ever exist in total. But Solana has no fixed supply of coins.

CONS

Unstable network.

Solana's investor community is still in its nascent stage. And with a shorter track record than Ethereum, investors may not be easily convinced to buy SOL over Ether.

CONS

Solana’s testing phases.

Solana has big plans for the future, but many of those plans still remain in beta testing. Until those plans are put into action by the company.

CONS

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