The “Digital Asset Visa” – this is how the probable future of the Solana (SOL) cryptocurrency was describe by Bank of America. The project team has worked hard on setting up its roadmap, which leaves room for potential growth prospects this year.
Key news includes the release of the Phantom Wallet, which has already attracted over 10 million users and won recognition from OpenSea – the largest NFT marketplace with $23.5 billion in revenue. In April, Solana was added to the list of supported blockchains on OpenSea, making it the fourth alongside Ethereum, Polygon, and Klaytn. The introduction of Solana as the largest NFT platform will likely increase demand for SOL, as the price of the coin has already increased by 6% this week
The undeniable advantage of Solana is its ability to perform faster and cheaper transactions, which will work in its favor in the context of “recharged” Ether. Solana significantly outperforms Ethereum in terms of transaction processing speed (over 50,000 TPS at its peak) and fees (under a cent). The network still lags behind in terms of security and decentralization, which sometimes leads to disruptions.
However, the number of nodes is constantly growing, and with a capitalization of $39.7 billion, Solana is challenging Ripple, aiming for sixth place in the Coinmarketcap ranking.
The LUNA token can benefit from rumors spreading in the community amid heightened geopolitical tensions. Previously, the secondary qualities of centralized stablecoins became their most discussed properties. Against the backdrop of more frequent instances of political involvement by major global brands across all sectors of the economy, even the theoretical possibility of companies like Tether or Circle blocking funds in the wallets of residents of a particular country has sent shock waves of panic in the market. .
An alternative to these projects are so-called algorithmic stablecoins, which are secured by cryptocurrency assets frozen on smart contracts, not dollars on issuer accounts. In the medium term, the popularity of Dai (DAI) and TerraUSD (UST) will increase, followed by an increase in liquidity and the circulating supply of tokens, which will lead to an increase in volumes of frozen assets that will support the increase emission.
The asset freeze will lead to a decrease in supply on the open market, creating an imbalance in the relationship between supply and demand, thus contributing to the growth of the price of Terra (LUNA) in the medium to long term.
Polkadot is another project benefiting from the rapid growth of the DeFi sector. The value of Polkadot (DOT) has increased by 191% over the past 12 months. Over the coming year, the token may continue its appreciation rally. One of the reasons could be the launch of the first parachain auction in the altcoin network at the end of 2022. Polkadot’s parachain is developed to solve Ethereum’s flaws, making transactions faster and cheaper. As a result, Polkadot is considered one of Ethereum’s few competitors, with a competitive throughput of 1,000 transactions per second.
If technological development is not yet a guarantee for the growth of a project token, then the price momentum is doomed without the support of the masses. Take DOGE, for example. Polkadot has won support not only from investors but also from tech-savvy users who are increasingly migrating to Polkadot and launching their projects there. The platform has successfully attracted different categories of users including traders, investors, and even developers to use the platform.
Chain link (LINK)
Chainlink (LINK) is another precursor that could benefit from the development of both DeFi and oracles in particular. The expectations of investors who had poured their funds into this token throughout 2021 may come true this year. Last year, the altcoin didn’t have time to demonstrate skyrocketing growth, but the coin still has the potential to update its all-time high.
Thanks to the wide possibilities of the project, its prospects seem great. It seems that not only private investors, but also large corporations share this sentiment, as partnerships have already been made with many of them, and the list is regularly updated. The fact may be that there are now too few projects on the market that work closely with oracles.
Today, it is one of the most talked about coins, with its price going up or down by hundreds of percent just based on community attention.
Dogecoin (DOGE) has a very strong and unique community that is not made up of more than just investors. Due to the token’s strong connection to the Elon Musk brand, the community reacts explosively to any statement made by the billionaire regarding the crypto market.
Musk could soon launch a token to the moon, literally and figuratively – in May last year he announced the launch of the Doge-1 satellite, which was funded by Dogecoin. As the launch countdown kicks in, the citation in global media may reach all-time highs, which will trigger a viral effect and lead to self-sustained growth in the price of the token.
The bullish price movement of Dogecoin is supported by the network’s recent increase in volume from $689 million to $5.95 billion in the last three days alone. Such dizzying growth in on-chain volumes indicates that investors are showing immense interest in the price of Dogecoin at current levels.
Therefore, capital may flow into the DOGE blockchain and may hint at a massive uptrend for DOGE waiting just around the corner.
Cardano (ADA) and Aave (AAVE) tokens could also show impressive growth over the next 12 months. The latter’s team recently announced plans to create a mobile wallet, which may help boost its price in the future. Cardano was the most active project in the last year in terms of development, according to analysts. A number of upcoming technical updates may also have a positive impact on the financial component of the ADA token.