The Solana coin is a utility token for a decentralized network intended for running smart contracts and dAps. In fact, it is another competitor of Ethereum with a new blockchain structure that has improved bandwidth and a better mechanism of interaction between nodes. Solana token is used to deploy smart contracts within the network and is a popular asset in the cryptomarket.
Solana is designed to service the network so it can be used in several ways:
- Solana coin staking – is available on many DeFi services that pay for the staking of coins. It is also possible to become a network validator by paying a certain deposit.
- Launching Smart Contracts – SOL is used as a payment for deployment and smart contract support in the Solana network.
- Voting – token holders can vote on decisions about the development of the site, including changing and updating the network code.
It is the functional value that underpins the established SOL price on the market, therefore further development of the site opens new long-term prospects for investors.
Solana token: how it works
The Solana coin belongs to the last generation of cryptocurrencies and has the following features:
- deflationary tokenomics – according to the plan of the developers, tokens should be burned, which will reduce the supply on the market and increase the SOL price in the future.
- fast growth – the Solana token appeared in the cryptocurrency market relatively recently, but within a few months went into the TOP capitalization rating and continues to hold market positions.
- no mining – the network uses a modified Proof-of-Stake algorithm. Transaction blocks are formed by validators, so you must be a validator to receive a reward.
SOL price volatility
SOL token price is influenced by both economic and technical factors related to the work and demand of blockchain:
- Developer demand – the more smart contracts and applications are running online, the more Solana tokens needed for developers and it creates additional demand.
- Development of competitive platforms – such networks as Ethereum, TRON, Cardano also offer infrastructure for the deployment of smart contracts, so the SOL price is dependent on the competitiveness of the Solana network.
- Market situation – as a market asset, the Solana coin is influenced by demand and supply, which also establishes its price.
Binaryx Exchange offers an interactive SOL price chart with the rate of the token in pair with the dollar and other currencies.
Use the SOL price chart as well as the Binaryx trading terminal and exchanger to buy or sell the cryptocurrency at the best market rate. Also, you can store coins directly on the exchange.