Solana

Solana Returns vs S&P

-45.00%

Versus S&P

-4.40%

10 hours ago

-45.00%

Versus S&P

-4.40%

10 hours ago

6m High

6m Low

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Solana

$233.99

$78.94

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S&P 500

4,796.56

3,900.79

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Solana

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S&P 500

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Does not follow the stock market

Sources: SOL, SPX

    Reasons to Invest

  • Powerful backers like the VC firm Andreeson Horowitz
  • Market cap between $35 billion and $57 billion
  • Innovative tech appeals to small-time traders and institutional investors alike
  • Strong adoption since launching in 2020 and has processed over 50 billion blockchain transactions
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Highlights

Good For

DeFi value investing

Time Horizon

Medium term

Diversification

Environmentally Friendly

Solana is a blockchain designed by the computer programmer Anatoly Yakovenko  and his team. It was invented to solve major traffic and service fee problems on the crowded Bitcoin and Ethereum networks, and some major financial players, including Bank of America, speculate that the Solana could take over the lion’s share of the market. The most distinguishing feature of Solana is its hybrid consensus mechanism technology dubbed “Proof-of-History.” With Solana’s tech upgrades, blockchain transactions can happen in as little as 400 milliseconds, compared to Ethereum’s 10 to 15-second processing speeds.

A value buy with potential for high growth

avg

+9144.9%

Avg Annual Returns

Past 10 years

Ways to Invest

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Want to keep it traditional?

The crypto exchange eToro is all set and ready to go public in 2022—presumably after a few more regulatory battles. Buy individual shares of eToro, once it merges with US SPAC Fintech Acquisition Corp (FTCV) and goes public on Nasdaq this year.

Compare Cryptocurrency Returns

Risk Score

6M Growth

Solana

SOL/USD

42

-44.95%

Bitcoin

BTC/USD

67

-47.35%

Risk Analysis

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Risk Analysis

As of 05/28/2022

42Moderate

Compared to

S&P 500
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Solana

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S&P 500

42Moderate

Solana has no cap on how many tokens can be made, so it’s technically inflationary. That makes it slightly less appealing than bitcoin, for instance, which is intentionally capped at 21 million coins. However, Solana’s appeal isn’t that it is an inflation hedge. Rather, it’s a new technology that provides an upgraded user experience and lower fees than the original smart contract blockchain, Ethereum. Investing in Solana is inherently volatile like all crypto, but its backers include one of the biggest U.S. venture capital firms, so many suspect it will outlast crypto’s trendiness and provide a long-term solution. SOL is now listed on several major crypto exchanges, including Binance, Bitfinex, OKEx, Coinbase, and others—so its mainstream adoption seems more and more likely. 

Performance During a Recession

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Performance During a Recession

During the Covid-19 pandemic, SOL’s value grew astronomically. Just two years ago in May 2020, SOL was valued at $0.5052. A year and a half later, in November 2021, SOL experienced an all-time high of $260.06. Some argue that crypto in general is somewhat recession-proof, as negative economic sentiment drives people to more disruptive alternatives.

Drawbacks

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    Drawbacks

  • Major potential, but only time will tell if Solana’s technology proves scalable
  • Solana’s mainstream appeal is a turnoff to some decentralized die-hards
  • Recent Wormhole hack led to a multi-million crypto heist—the money was recovered, but Solana’s price dove 10%
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How You’re Taxed

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How You’re Taxed

Capital Gains

Capital Gains

Until the Securities and Exchange Commission (SEC) rules that utility tokens like SOL are securities, you should at least consider all crypto an asset. Capital gains rules therefore apply when trading crypto for profit and/or loss. Most tax payers will owe 15% or 20% (based on your income) in capital gains tax after holding assets for at least one year then selling. You’ll get taxed at your regular income tax rate on any crypto profits you make from assets you held under one year. Fortunately, buying small amounts of crypto on centralized exchanges like Gemini doesn't usually count towards capital gains—you have to sell it or exchange it for another crypto or fiat currency.

Did You Know?

  • poitStar

    Melania Trump is a Solana fan and minted her first NFT collection on the platform. The Solana team, however, was reportedly a little “meh” about the whole thing.

  • poitStar

    Solana launched its own version of Apple Pay, Solana Pay, in early February 2022.

  • poitStar

    If you had bought $1,000 of SOL on May 11, 2020, it would have been worth $357,040 on January 1, 2022. 

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