Solana is one of the most famous Level 1 (L1) blockchains, which has been in the center of attention of crypto community participants for several years in a row. At the moment, the native token of the SOL project is trading 92.5% below the historical high reached in November 2021.
A large-scale market crash often makes beginners panic and hastily sell off their assets. However, experienced traders regard such events as an opportunity to form a reliable medium- or long-term portfolio and buy coins of interest at a discount.
Let’s find out how much you need to invest in Solana now to become a millionaire during the next bullrun.
Prospects for Solana
The Solana project was founded in 2017 by Eric Williams, PhD, BREW OS developer Greg Fitzgerald, and Anatoly Yakovenko, a former Qualcomm and Dropbox developer.
In the first quarter of 2018, the developers launched the first version of the Solana testnet and led a seed round of investment, and in July 2019 raised over $20 million from venture capitalists in a Series A round.
March 2020 marked the launch of the beta version of the test network with basic transaction capabilities and smart contract functions. In the same month, an initial coin offering (ICO) of SOL coins took place, during which the project managed to raise $1.76 million. A year later, Solana Labs raised $314.15 million in a private round led by Andreessen Horowitz and Polychain Capital.
Solana’s popularity is due to the following factors:
1.Team
SOL has a strong development team with many years of experience behind it.
2.New technology
Solana uses a combination of Proof-of-Stake consensus algorithm and Proof-of-History mechanism. This approach improves the efficiency and speed of the blockchain while providing a secure and verifiable record of transactions.
3.Community
A strong community of users, developers, investors and partners helped Solana stay afloat even in challenging times.
4.Ecosystem
Currently, there are more than 350 projects operating on the Solana blockchain.
As of early September, the asset is among the ten most capitalized cryptocurrencies with a value of $8.02 billion.
However, Solana also has drawbacks. The blockchain has repeatedly encountered technical problems that caused it to stop working for several hours. In addition, members of the crypto community often accuse the project team of lacking transparency and doubt that the network is decentralized enough.
How many SOLs do you need to buy to become a millionaire
To calculate the amount of SOL you need to buy to become a millionaire when the price returns to its all-time high of $259.96, you can use the following formula:
Quantity of SOL = Target Amount / Expected Future Price,
where:
Target Amount – $1 million
Expected future price – the historical high of $259.96
Thus, to see a round sum of $1 million in the account, you need to purchase 3,846.19 SOLs. At the current price of $19.83, the coins would be worth about $76,269.
Nevertheless, it should be understood that the crypto market can be extremely volatile and subject to the influence of “black swans”. The above calculations are based solely on current data and assumptions. Always remember to observe risk and mani-management and trade only with the money you can afford to lose.