Solana (SOL) is crashing.<\/p>\n
It got cut nearly in half over the last month, dropping\u00a045%:<\/p>\n
Source: Coinmarketcap<\/em><\/p>\n Does that mean you should sell? Or is Solana a screaming buy?<\/p>\n As I\u2019ll show you, I think this pullback is a buy-the-dip opportunity.<\/p>\n Two reasons:<\/p>\n A week from now, Solana will release 11.2 million SOL tokens into the system worth around $2\u00a0billion.<\/p>\n This will create some inflation. But it\u2019s really no cause for panic. 489 million SOL tokens are already in circulation. So that additional unlock will add just 2%\u00a0more.<\/p>\n Also, Solana doesn\u2019t plan any other big unlocks until January\u00a02028.<\/p>\n Solana is the most popular blockchain to launch meme coins. There have been a number of pump-and-dump scandals recently involving Solana meme coins recently.<\/p>\n The most popular one was Argentina\u2019s President Milei\u2019s Libra coin. The market cap of $LIBRA reached $4.6 billion a few hours after the launch, then fell to only $162 million by the next day. A 96%\u00a0drop.<\/p>\n Other popular meme coins like Trump coin, Melania coin, and Dave Portnoy\u2019s GREED coin shed 80\u201390% of their value\u00a0too.<\/p>\n In other words, the meme coin bubble has finally\u00a0popped.<\/p>\n Some investors are afraid this means demand for Solana\u2019s blockchain will evaporate. They couldn\u2019t be more\u00a0wrong.<\/p>\n Thousands of blockchain apps are being built on the Solana infrastructure. Solana is the foundation of an entire digital\u00a0economy.<\/p>\n Think of how the App Store works on your iPhone. You can download millions of apps for just about everything. The only limit to what \u201capps\u201d developers can build on Solana is their imaginations.<\/p>\n Today, there are over 500 apps running on Solana\u2019s blockchain\u200a\u2014\u200aand it\u2019s the home to many of the world\u2019s top DeFi projects like Raydium (RAY), Ondo Finance (ONDO), Jito (JTO), and\u00a0others.<\/p>\n And each app pays millions of tiny fees to Solana for each transaction. Solana made over $100 million in fees in\u00a0January.<\/p>\n Solana currently processes 65,000 transactions per second\u200a\u2014\u200ajust as fast as Visa. That\u2019s 10,000X faster than bitcoin and 2,000X better than Ethereum.<\/p>\n Solana is also far cheaper to use than most other blockchains. It costs about three bucks to do a transaction on bitcoin. And between $8 and $40 on Ethereum. A transaction on Solana will set you back $0.00025\u200a\u2014\u200aa fraction of a\u00a0penny.<\/p>\n Ever heard of the \u201cinfinite bid\u201d?<\/p>\n When tens of millions of Americans get paid every other week, they buy stocks on autopilot through their retirement accounts.<\/p>\n This creates continuous demand for stocks, which puts a floor under\u00a0prices.<\/p>\n Crypto lacked this infinite bid until ETFs\u00a0arrived.<\/p>\n When bitcoin ETFs got the green light to start trading at the beginning of 2024, the floodgates opened. Billions of dollars of Wall Street\u2019s money started pouring into crypto for the first time ever. Just two months after Bitcoin ETFs launched, $60 billion worth of investor money poured into these funds. It\u2019s the main reason why BTC corrections during this bull cycle are so\u00a0shallow.<\/p>\n So far, five institutions applied for a Solana ETF: VanEck, 21Shares, Canary, Bitwise, and Grayscale which is converting its existing Grayscale Solana Trust\u00a0(GSOL):<\/p>\n Source: Bloomberg<\/em><\/p>\n We already have Ethereum and bitcoin ETFs. Solana ETFs are the logical next\u00a0step.<\/p>\n More important, Solana is 17 times smaller than bitcoin. That means it takes a lot less money to move its\u00a0price.<\/p>\n Even if Solana attracts 10% of the inflows bitcoin got, logic says that when billions of dollars start flowing into SOL, its price will rise exponentially.<\/p>\n It happened four times. And after each crash, Solana price went on to make new\u00a0highs.<\/p>\n It\u2019s also important to remember Solana price is up 2,100% since bottoming in December\u00a02022.<\/p>\n I first recommended SOL to my Venture<\/em><\/a> <\/em>subscribers in 2023. And while I no longer think it\u2019s a screaming buy as it was then, I still think you\u2019re getting a bargain at these\u00a0prices.<\/p>\n Bottom line: Buy Solana while it\u2019s\u00a0cheap!<\/strong><\/p>\n For more insights, <\/strong>subscribe to my investing letter The\u00a0Jolt\u26a1.<\/em><\/strong><\/a><\/p>\n I publish fresh research on stocks and crypto every Monday and\u00a0Friday.<\/p>\n Click here to subscribe<\/a>.<\/p>\n Also, I just released a report on <\/strong>3 early-stage cryptos to buy in\u00a02025<\/strong><\/a>.<\/strong><\/p>\n Click here to read\u00a0it<\/a>.<\/p>\n \u2014 Stephen McBride, Chief Analyst at <\/em>RiskHedge<\/em><\/a><\/p>\n Is Solana a screaming buy?<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" Solana (SOL) is crashing. It got cut nearly in half over the last month, dropping\u00a045%: Source: Coinmarketcap Does that mean you should sell? Or is Solana a screaming buy? As I\u2019ll show you, I think this pullback is a buy-the-dip opportunity. Why did Solana\u00a0crash? Two reasons: #1 The \u201cbig\u201d $2 billion Solana unlock is scheduled […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-46612","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46612"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46612"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/46612\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Why did Solana\u00a0crash?<\/h3>\n
#1 The \u201cbig\u201d $2 billion Solana unlock is scheduled for March\u00a01.<\/h4>\n
#2 The meme coin bubble\u00a0popped.<\/h4>\n
Investors who think Solana is just a platform to launch meme coins are missing the big opportunity.<\/h3>\n
Developers love Solana because it\u2019s the fastest of all the major blockchains.<\/h4>\n
Solana ETFs are coming in\u00a02025.<\/h3>\n
Since bottoming in 2022, Solana has bounced back from every 40%\u00a0drop.<\/h3>\n