Solana, currently supporting 50–65k transactions per second and 400ms block times, without complex solutions like sharding or layer-two, can drastically be able to outperform any other existing layer 1,. And yet it will not burn a hole in your pocket because of astronomical fees!
Amidst all the DeFi hype, we are able to witness the scalability problems on ETH, especially the unsustainable gas fees; and ETH 2.0 upgrade seems to be ages away, still now.
After the massive success of $SRM tokens, backed by Alameda research and FTX team, which went up by more than 1500% since launch, I took a deep dive into seeing what Serum is really solving, and the Platform they chose to build their product on, Solana (SOL).
Serum project really showed us the possibility, what is probably possible on Solana blockchain, and the use case is great.
image source: Solana.com
This is the first post about undervalued altcoins, and I'm taking an initiative to post about those altcoins under the "Gem 101" tagline which I personally feel are undervalued and have a lot of potential. Since there are a hell lot of coins in the market, and you know about some altcoins that may have a lot of potential feel free to let me know on Twitter, or on discord, and I'll check that out
Before diving into this article, here's a disclaimer:
I'm not a certified financial advisor, and even though I've been trading for quite a few years, I urge people reading this, and my other posts to #DYOR (Do your own research) before taking any decisions!
Of course I'm going to help you out if you have some queries/doubts, so feel free to let me know in the comments, or on Twitter :)
I have also not been contacted by Solana team to shill this project :P
And I do hold some (not significant) amount of Solana tokens.
A Brief intro about SRM (Serum), a Platform built on top of Solana:
Serum claims to be the world's first completely decentralized derivatives exchange with trustless cross-chain trading. They also claim to support the best technology from centralized exchanges for orderbooks, and have addressed two key shortcomings of a DEX: Speed, and Fees.
This is something which interested me, as none of the Dexes have manage to solve all the above issues simultaneously.
Well in case there are any, and I'm not aware, please let me know in the comments below
And the best thing? Probably that's why I'm posting about the underlying coin:
The Solana integration will be interoperable with ETH, so you can imagine the market is is trying to challenge!
They have got pretty big names behind them, so here is a tweet by Sam Bankman Fried, CEO of FTX and Alameda research about Serum:
The following things make Solana stand out of the crowd:
"Proof of History" which is nicely explained in the Medium article by them.
With Proof of History, you can create a historical record that proves that an event has occurred at a specific moment in time.
The Proof of History is a high frequency Verifiable Delay Function. A Verifiable Delay Function requires a specific number of sequential steps to evaluate, yet produces a unique output that can be efficiently and publicly verified.
This appears to be a rock solid innovation.
I'm not going into the details about how it works, and a more technical, well explained article is present on their Medium blog post, so feel free to check the embedded link.
On the development side, they seem to be pretty active as well, with the latest Github commit happening within 24 hours (at the time of writing).
Much of the code is written on Rust,
which is fast and memory-efficient, with no runtime or garbage collector,and can power performance-critical services, and easily integrate with other languages.
So the claim that the Solana blockchain is built with speed in mind is pretty much valid.
Let's have a look at the chart and the possible buy/accumulation zone, if you are planning to get into this token for long term:
Warning: This is an estimated buy zone, and may reach, may not reach, and may even drag you down in case things go terribly wrong (Recent Example: Yam token, which dumped 99% due to a bug in the code.)
That dump was worse than Bitconnect lmao)
##Chart: SOL/USD, 4H
Points to note:
- Buy zones/accumulation zones have been marked on chart.
- A small RSI Divergence observed, so it will be better not to FOMO immediately.
- This project is almost 16x up from the Ico, which happened
Note: If you are willing to buy and you don't want to miss out, on gains even if the market goes down, you can buy Solana tokens on the spot exchange, and hold a small short as well, with a stoploss just above the market structure.
In case you want a discount on fees, you can check out this link and sign up on FTX
Why FTX? Because SOL token futures are currently only available on that exchange.
And if you like Serum, you can stake Serum tokens directly from FTX.
A Brief update on the Bitcoin Dominance:
Points to note:
- 4H support broken down (bullish for alts)
- Mid Marketcap Alts looking technically good
- Keep eyes on the weekly support zone (Marked in blue) Below that, and alts will fly again...
I'll be holding this project for long term. and I'll probably try to accumulate more coins on the way up/down.
But hey, It's better not to get "married" to a project by breaking your bank account. I'll be keeping some part of my alt capital on this coin, and sell when euphoria around this is at the peak.
If you liked the article, consider sharing this with your friends and circles, and also spare an upvote for me, so that I get motivated to keep sharing market insights and analysis :)
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