Solana is a well-known crypto asset and a platform among crypto developers and enthusiasts. The Solana network is a foundation for hundreds of decentralized apps such as:
- NFT
- Blockchain games
- Metaverses
- Lending protocols
- Web3 applications
- DeFis
- And other digital products.
That is why Solana’s popularity skyrocketed in 2021 – it brought a much cheaper and more efficient solution for developers who quickly switched to Solana. Unlike the slow and expensive Ethereum blockchain, Solana offers much better conditions, and besides, it has the Proof-of-Stake mechanism at the core, which means SOL coins are not mined but staked.
With the addition of the Proof-of-History consensus protocol, the Proof-of-Stake mechanism enables much faster transaction confirmation than blockchains running on the Proof-of-Work protocol of consensus.
SOL coin is the core element in the Solana network, which participates in all the processes and enables smart contract execution. As of November 2022, Solana crypto price is $14.09.
How are SOL Coins Received?
As we mentioned above, SOL crypto is not mined, for it is based on the Proof-of-Stake and Proof-of-History mechanisms. That means the coins are not mined, and their generation does not require expensive mining equipment and huge energy expenses. Staking, in fact, means proof of ownership. That is, if you have some SOL assets, you may lock them in the Solana network and help its liquidity, and in return, you will receive additional coins as rewards. The more coins you leave locked and the longer the period, the more rewards you will get. Stakers gather in pools to lock a large number of coins at once and share profit.
The Latest News on Solana Price
Looking at the SOL price chart, we can see that in the first days of November, the price reached over $36, and today the indicator is reduced to $14. The main reason for this drop was unexpected news about the FTX exchange bankruptcy, which stimulated investment outflow from the platform in a couple of days after the information was revealed. Such news always has a negative impact on the market, pulling all crypto rates down.
We should not forget that the crypto market lived through up and down trends, and the best idea is to buy promising coins at the bottom to generate income on the market growth.