Recently, many people have asked me, 'Can Solana be bought?' Some even said, 'The volatility of Solana is too high, I dare not touch it.' As an analyst covering both Ethereum and Solana, I must state objectively: Solana is indeed volatile, but its growth potential should not be underestimated. According to a16z, Solana has seen the highest increase in developer interest among ecosystems over the past two years, with a growth rate of 78%, making it one of the fastest-growing crypto ecosystems.
The first core advantage of Solana that has been overlooked: extremely high performance.
Solana adopts a unique PoH consensus mechanism, capable of processing tens of thousands of transactions per second, with transaction fees only a few cents, far surpassing Ethereum's mainnet. This high performance gives Solana a natural advantage in high-throughput sectors such as gaming and NFTs. For example, the NFT platform Magic Eden on Solana once had a daily trading volume that exceeded OpenSea on Ethereum, which is a result of performance advantages.
The second core advantage: a low-cost developer ecosystem.
The development threshold for Solana is relatively low, and the ecosystem fund provides substantial support to developers. Many developers have shifted to Solana due to the high transaction fees and complex development environment of Ethereum's mainnet. Data from a16z shows that Solana currently accounts for 53% of revenue-generating economic activities, representing a significant shift from the earlier dominance of Bitcoin and Ethereum, which is enough to indicate developers' recognition of Solana.
The third core advantage: active layout by institutions.
Although Ethereum is the preferred platform for institutions, Solana has also attracted considerable attention from various institutions. For instance, FTX, although now defunct, was once a significant supporter of the Solana ecosystem, and many hedge funds are also investing in Solana-based projects. Additionally, the trading volume of stablecoins on Solana continues to grow, becoming one of the important circulation platforms for stablecoins.
How should retail investors position themselves in Solana? My strategy is 'small-scale investment + selective projects.' First, due to the high volatility of Solana, do not invest too much capital; it is recommended to control it within 10%-20% of total assets. Second, choose high-quality projects in the Solana ecosystem, such as leading DeFi projects, gaming projects, NFT platforms, etc., as these projects will benefit from ecological growth. Finally, pay attention to Solana's upgrade dynamics, such as the recent network stability upgrades, which will enhance Solana's security and usability.
Many people are worried that 'Will Solana collapse like it did in 2022?' My answer is: the likelihood is low. After several years of development, Solana's ecosystem has become relatively mature, and the developer and user base is continuously expanding. Although there are still network stability issues, the team has been actively working to resolve them. In the coming years, Solana will occupy an important position in the high-performance track, becoming a strong complement to Ethereum. I will share specific layout opportunities in the Solana ecosystem later, follow me@链上标哥 to not get lost! I'll help you seize this fastest-growing ecological opportunity.
