{"id":3054,"date":"2024-02-12T12:29:36","date_gmt":"2024-02-12T12:29:36","guid":{"rendered":"https:\/\/solanacrypto.news\/2024\/02\/12\/if-you-invested-1000-in-solana-in-2021-this-is-how-much-youd-have-now\/"},"modified":"2024-02-12T12:29:36","modified_gmt":"2024-02-12T12:29:36","slug":"if-you-invested-1000-in-solana-in-2021-this-is-how-much-youd-have-now","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2024\/02\/12\/if-you-invested-1000-in-solana-in-2021-this-is-how-much-youd-have-now\/","title":{"rendered":"If You Invested $1,000 in Solana in 2021, This Is How Much You’d Have Now"},"content":{"rendered":"
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With all the attention that <\/span>Bitcoin <\/span><\/strong>has gotten recently, primarily because of the long-awaited approval of spot exchange-traded funds, investors might have forgotten some under-the-radar digital assets.<\/span><\/p>\n

Solana<\/span><\/strong><\/a> (CRYPTO: SOL)<\/span> is one of them. The innovative cryptocurrency has been a huge winner. In the last three years, its price has soared 1,390%, turning $1,000 into $14,910 right now. The <\/span>blockchain<\/span> network’s market cap today is $42 billion, the fifth highest in the world.<\/span><\/p>\n

Let’s take a look at Solana over the past few years before figuring out if this cryptocurrency makes for a smart investment today.<\/span><\/p>\n

It’s all about speed<\/span><\/h2>\n

Like <\/span>Ethereum<\/span><\/strong>, Solana was built with functionality for <\/span>smart contracts<\/span>, which immediately boosts its potential for utility. And Solana’s transactions are processed with a <\/span>proof-of-stake<\/span> mechanism. <\/span><\/p>\n

But what stands out is its proof-of-history technology. This reduces the amount of data needed on each block by changing how time is recorded, which leads to fast processing times. Solana can theoretically handle 50,000 transactions per second. That’s in the neighborhood of credit card giant <\/span>Visa<\/span><\/strong> and its throughput of 65,000.<\/span><\/p>\n

Despite what appear to be some innovative qualities in the crypto space, Solana is still exposed to the whims of the broader market. The token skyrocketed more than 11,000% in 2021 during the monster bull run, only to crash 94% the following year. Then, it rose 963% in 2023. This is the nature of crypto assets.<\/span><\/p>\n

Potential use cases<\/span><\/h2>\n

It’s easy to get caught up in all the financial speculation happening in the crypto market, but what will ultimately matter is if these networks find ways to introduce valuable use cases that gain broad adoption. Solana is trying hard to achieve this.<\/span><\/p>\n

In what I view as a unique strategic move, Solana developed and <\/span>released a web3-based smartphone<\/span><\/a> called the Saga that looks eerily similar to an iPhone. The goal is to have decentralized apps built in, as well as a crypto wallet, that makes it seamless to interact with the web3 world. <\/span><\/p>\n