Crypto exchange FTX’s founder believes Solana has the potential to become the next Bitcoin.
The smart contracts platform recently released a report that claims SOL transactions are more energy efficient
However, Solana is struggling to break above a descending trendline.
NEW DELHI (CoinChapter.com) — Public blockchain platform Solana (SOL) could become the next Bitcoin, believes crypto exchange FTX founder, Sam Bankman-Fried. He is optimistic about Solana’s future and asserts the smart contracts platform can achieve a Bitcoin-level mass adoption.
Mr. Bankman-Fried shared his views in an interview with Kitco News on Thursday. He further opined that Solana is better than Ethereum (ETH) since it can scale to accommodate mass adoption. The FTX founder also stated he expects to see “substantial institutional adoption of cryptocurrencies” in a few years.
Moreover, Mr. Bankman-Fried also highlighted that cryptos with important use cases would likely survive in the event of a market crash. Hype-driven cryptos, such as memecoins, often end up worse after a crash, he stated.
Additionally, the FTX chief highlighted Solana’s roadmap, in which it plans to scale to millions of transactions per second, as an important indicator of the platform seeing mass adoption soon. The 29-year old billionaire also emphasized Solana’s market cap could exceed Ethereum’s in the next few years.
Greener Than Google, Claims Solana
In other news, Solana’s Energy Use report for Nov 21 stated that a transaction on its network takes less energy than two Google searches. As per the report, the Solana Foundation calculated that a single SOL transaction uses 0.00051 kWh or 1837 Joules of energy.
In comparison, a single Google search uses 1080 Joules, while using a desktop for an hour consumes 46,800 Joules, nearly 25 times more energy than a single Solana transaction. Moreover, the report also compared Solana’s energy consumption with that of Etherum and Bitcoin.
A single Ethereum 2 transaction uses 68 times more energy than Solana, while a Bitcoin transaction uses 6,995,592,000 Joules of energy. Compared to Solana, Bitcoin uses 3,808,161 times more energy.
At present, leaders around the world are discussing ways to minimize carbon emissions. The cryptocurrency sector has faced severe criticism regarding its energy consumption, particularly Bitcoin. Mining BTC consumes a lot of energy, which is the reason Tesla gave for reversing its decision to accept Bitcoin payments in May this year.
Solana trying to establish itself as a greener alternative to its peers would certainly help increase its adoption rates. As such, the Solana Foundation has vowed to reduce the Solana ecosystem’s impact on the environment. Solana plans to introduce a program to make Solana’s validator network carbon neutral and decrease the network’s carbon footprint.
The network would also release periodic reports on the project’s energy stats. While Solana isn’t the only blockchain firm trying to go green, its high transaction speeds give the network an edge.
SOL Price Charts
SOL prices are in a downtrend, moving down along a descending trendline. The Solana token jumped 23.29% in Nov first week but then fell into a downtrend that has resulted in SOL losing 5.48% in Nov. Solana fell alongside the wider crypto market on Friday as the FUD over a new Coronavirus strain resulted in global liquidation.
On Nov 27, SOL tried to make an upward move but only managed to gain 0.10% intraday. On Sunday, the token is falling again. At present, SOL has resistance at $202.96, near its 50-day MA line. Further resistance comes from SOL’s 26-day EMA trendline at $215.87.
If bulls continue the token’s uptrend, SOL would likely test resistance at $226.20 before retreating.
On the other hand, if the downtrend continues, Solana would likely retest the key support level at $180.9. SOL has tasted the $180 support level has multiple times since moving above it on Oct 21. However, if prices breach immediate support, SOL would try to recover near its 100-day MA line at $169.28.
A sustained sell-off could bring prices down to $156.47 before Solana starts recovering.
Meanwhile,trend-based momentum oscillator MACD continues to be bearish for SOL. Bars on the MACD histogram seem to be expanding, indicating the MACD line (difference between 12-day and 26-day) is moving further away from its signal line (9-day EMA of MACD).
Expanding histogram bars suggest the bearish momentum is getting stronger. In addition, the relative strength index trendline is neutral, clocking 40.73 on the daily charts. The RSI trendline is moving downwards towards oversold levels. An RSI below 30 often forecasts a trend reversal for an asset, which, the bulls would hope holds, true for SOL.
At the time of writing, SOL was trading at $189.96, down 1.53% on the day.
A Delhi-based Markets writer, I did my bachelor's in engineering with major in electronics and communications. I first heard of bitcoin while writing an article about blockchain technology a few years back, and have been following it ever since. Bitcoin may well be current big thing happening in the finance industry, and it feels like the right time to join the crypto bandwagon.