Solana is one of the favorite blockchains of 2021 and its popularity continues to increase. The price of the Solana coin (SOL) has increased nearly 100 times since the beginning of the year, and there is still no sign that this increase has stopped. The Solana network has also become quite popular in the DEFI space, with cent-level transaction fees and half-second transaction time.

Solana was founded in 2017 by software engineer Anatoly Yakavenko. Solana blockchain works with the Proof of History consensus mechanism, which is a different version of Proof of Stake. This consensus mechanism uses timestamps to determine whether transactions are genuine.

Solana did not take advantage of Ethereum infrastructure, like Binance Smart Chain or Polygon. It leverages a lower-level programming language called Rust.

Solana Ecosystem

The Solana ecosystem, which can be accessed at https://solana.com/ecosystem, currently includes over 350 projects.

According to the statistics of https://dappradar.com/rankings/protocol/solana, Marketplace and DEFI applications attract the most attention.

https://solanart.io/, the most used marketplace application of the Solana ecosystem, contains a large number of NFT collections. Like many other blockchain networks, Solana has monkeys and punks, and these are the collections that attract the most attention.

Solana Defi Applications

According to the statistics of https://defillama.com/chain/Solana, Solana still has 26 DEFI applications. These applications include DEXs, lending applications, and yield farming applications. I used Raydium, Saber, Sunny, and Orca applications in the Solana ecosystem. Orca was my favorite application because of its high-yielding liquidity pools and its frontend that provides a satisfying user experience.

To perform DEFI transactions on the Solana network, it is necessary to install the Phantom wallet. I installed Phantom as a Chrome extension on my computer and sent SOL to this wallet from my Binance account. It's similar in concept to using Ethereum, BSC, or Polygon chains. Only Phantom is installed instead of Metamask.

Solana Phantom wallet can be used with Ledger Nano hardware wallet, I haven't done this setup yet. It may be a reasonable option for those who want a higher level of security.

Supply of Sol Coin and Investment Alternatives

According to Messari inflation statistics, the inflation rate of Sol Coin is still 10.6%. In five years, this inflation rate is planned to decrease to 1.5%. Although Sol is an inflationary coin, some of the commissions from transactions made on the network are used to burn Sol. Therefore, as the use of the Solana network increases, inflation may decline.

In addition to leveraging DEFI implementations, Sol staking on https://www.binance.com/en/earn may be a viable Sol investment alternative.

Sol Price Forecast

It is difficult to predict how the Solana price may develop in the short term. On the other hand, I would like to point out that the increase in Solana price does not look like a pump and dump scheme. In the logarithmic chart below, it can be seen that the Solana price has been increasing steadily since its first trading day.

Sol price dropped to $120 after reaching $200 on September 9th and then managed to rise to $200 again. My opinion on Sol is bullish.

Conclusion

I would like to summarize what I said above.

• Founded in 2017 by software engineer Anatoly Yakavenko, Solana has become quite popular in recent months.
• Working with the Proof of History consensus mechanism, transactions can be made quickly and cheaply in the Solana network.
• Sol coin price has increased 100 times this year.
• My favorite Solana DEFI application is Orca.
• Inflation of the SOL coin is currently 10.6% and is projected to drop to 1.5% in 5 years.
• Sol price is still in a logaritmic uptrend.

I would like to note that the information I have given above is not investment advice. Although I am a crypto enthusiast, I am not an investment expert.

Thank you for reading.

Cover Image Source: https://github.com/solana-labs/ecosystem

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