Cryptocurrency Solana is likely to again outperform both Bitcoin and Ethereum, the world鈥檚 two biggest digital currencies, in 2022, according to the CEO of a $12bn financial giant.
The bullish prediction from Nigel Green, chief executive and founder of deVere Group, one of the world鈥檚 largest independent financial advisory, asset management and fintech organisations, comes amid another sharp bearish dip for leading cryptocurrencies on Friday.
Bitcoin, Ethereum and Solana were down around 5.7%, 6.8%, and 8.9% respectively over the previous 24 hours of trading.
Mr Green says: 鈥淓nd of the week trading was hit by negative sentiment of high-growth stocks, which went on to impact Bitcoin, the world鈥檚 largest cryptocurrency by market cap which, in turn, weighed on the wider crypto market.
鈥淒espite this current volatility, crypto investors who have consistently stayed in the market have generally had a positive year. Year-to-date Bitcoin is up 46%, Ether 376%, and Solana around 13,000%.
鈥淪avvy investors 鈥� both retail and institutional – know that crypto is the future of money. In times of volatility, in which there are lower entry points to top up portfolios, they typically continue to drip-feed money into the digital assets market.鈥�
He continues: 鈥淚鈥檓 confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap. It started off the year trading at around $2, now it鈥檚 changing hands on the deVere Crypto app for about $200.
鈥淚t鈥檚 likely it will outperform both Bitcoin and Ethereum again next year.
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鈥淲hy? Because of its masterful technology and its cost-effectiveness.鈥�
Mr Green explains: 鈥淪olana is a blockchain platform that has superior high transaction speeds, processing over 2,500 transactions per second – main rival Ether鈥檚 is 15 鈥� and at a lower cost and without compromising decentralisation.
鈥淟ike Ether, it supports smart contracts, which are algorithms that are designed to operate automatically based on predefined agreements on blockchain technology.
鈥淭his revolutionary tech will ultimately change the way almost all business and financial services are delivered in the future. As such, a growing number of decentralized finance (DeFi) applications are moving to Solana.
鈥淭hey鈥檙e also attracted by the considerably cheaper fees compared to Ether, whose prices have exploded in recent months.鈥�
In September, the Solana network went down for about 17 hours. At the time, on Twitter, Solana explained a large jump in transaction load to 400,000 per second overwhelmed the network.
鈥淚t鈥檚 a young network still and this was just a temporary glitch,鈥� comments Nigel Green.
He concludes: 鈥淚n-the-know investors are watching it with interest.
鈥淭here鈥檚 no reason why it shouldn鈥檛 again outperform headline grabbers Bitcoin and Ethereum next year if the current momentum continues.
鈥淚t鈥檚 a momentum driven by a booming DeFi space as retail investors seek alternative funding opportunities and institutional investors continue to pile in.
鈥�2022 will be Solana鈥檚 breakout year.鈥�
