Knowing the themes and topics that are both positively and negatively affecting the price of individual cryptocurrencies is a crucial component of better understanding the cryptocurrency market.
The seventh-largest cryptocurrency by market capitalization is now Solana (SOL), which has surpassed Dogecoin.
Solana’s Extraordinary Growth
Solana has increased by more than 300% in the last month and by more than 10,000% since the year’s beginning. With a market cap of more than $47 billion, it has surpassed Dogecoin to take the seventh-largest cryptocurrency ranking, according to data from CoinMarketCap.
The recent surge in non-fungible tokens (NFTs) has benefited Solana as well as a number of other cryptocurrencies with smart contract functionality. The blockchain is elevated to something more than just a sophisticated ledger that records transactions thanks to smart contracts, which are tiny pieces of code that live there. NFTs, which are unique digital collectibles with ownership and authorship information recorded in the token, are one use for this technology.
Degenerate Apes, a new NFT line from Solana, was just released. The entire collection was sold out in less than 10 minutes, and prices for the sharply dressed primates have been rising as well.
One of the fastest cryptocurrencies available is Solana, which can process more than 50,000 transactions per second. Additionally, each transaction only costs a tiny fraction of a dollar. Solana has gained attention as programmers search for alternatives to Ethereum (ETH), which requires a significant upgrade to address its congestion and fee problems.
Dogecoin Hasn’t Gained Momentum
If Dogecoin has taught us anything, it’s that things rarely go as planned. Because of tweets from Elon Musk, the price of the coin has increased by almost 6,500% since the year’s beginning. Despite the coin’s lack of a business plan or a full-time team, price increases continued to occur.
In fact, even if you have never had an account with the company or even heard of it, you have probably used its technology in the last few days. It has spread to that extent.
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However, Dogecoin has a sizable following of supporters (referred to as Shibes) who adore the joke coin’s lighthearted attitude. Dogecoin, however, is currently venturing into uncharted territory; it has reactivated its foundation board and plans to hire paid staff and open a headquarters. The creator of Ethereum, the legendary Vitalik Buterin, is a member of the board.
You would have thought that fixing the issues that made it a dubious investment would have boosted Doge’s price. It hasn’t moved much, though, so far. This might be as a result of the path being challenging to travel. It must maintain the playful puppy image that made it so well-liked while also implementing the technological advancements and strategic changes that might increase its long-term value. If it can maintain its anti-establishment reputation, only time will tell.
Should You Buy SOL Or DOGE?
Predicting the peaks and troughs is one of the difficulties of investing in cryptocurrencies because it is practically impossible. Although not nearly as much as Solana, the cryptocurrency market has generally grown over the past few weeks. Some analysts contend that the drop we saw in May may be impending, as a result.
The Ascent suggests investing for the long term and only spending money you can afford to lose because of this uncertainty. You won’t have to be concerned about daily price fluctuations if you look at the fundamentals and forecast where SOL or DOGE may be in five to ten years or more.
Since months, the demand for Ethereum alternatives has increased, and these programmable cryptocurrencies have enormous future potential. If you consider that smart contracts could take the middleman out of any transaction, from buying a house to tracking every step in a supply chain, we’ve only seen a fraction of what could be achieved.
One factor that has prevented the industry from progressing is the congestion on Ethereum; for instance, real estate transactions won’t switch to the blockchain until users can be sure of its speed and security. We get closer thanks to Solana’s fast speeds and affordable prices.
Bottom Line
Solana, which is accessible from the majority of the top cryptocurrency exchanges, appears to be in a strong position to become one of the top smart contract cryptos, assuming that the industry continues to expand.
The distinction between blockchain technology and cryptocurrencies should also be made, though. In particular, if tighter regulation stunts cryptocurrency’s development, businesses may find ways to profit from blockchain technology without utilizing cryptocurrencies.
