Solana (Sun) is one of the cryptocurrencies that has had the highest yield in the dollar in the last two years.
From the beginning of 2024 to the present, Solana records a 20% price increase In American currency.
During that period, the assets reached a record high of $293 (ATH) by launching the market for Donald Trump (Trump)’s official mimecoin, as reported by Cryptootics.
At the time of publication of this memo, Sun’s quote is $125.
So, what happens to Solana when compared to currencies that don’t suffer constant depreciation like the dollar? More than that, How does Sol work when measured with Bitcoin (BTC)?
As can be seen in the following graph, the value of the Sun in BTC shows the infamous performance for half of last year.
Currently, the price of the Sun measured in BTC is 0.0014, the lowest level since November 2023.
Before continuing, it is important to make it clear that Sol is not the only currency that has a bad performance in front of Bitcoin. As Cryptootics, Ether (ETH), Ethereum’s native cryptocurrency, has dropped to 0.020 BTC, the lowest level since December 2020.
This pattern strengthens market trends. Many altcoins grow in terms of feet of money, but in general, prices tend to fall when compared to BTC. This highlights the difference between the currency created by Nakamoto AT and cryptocurrency.
For this reason, holding altcoins is not usually a long-term profitable strategy.
Why does this happen? As a rule, because BTC is considered by many investors as “digital gold” Because of similarities with precious metals.
Bitcoin is limited to 21 million units, and its broadcasts are reduced every four years by Harving. This inherent shortage strengthens the reserve’s asset value and generates profits among investors, large and small.
In certain cases of SOL, its supply is unlimited, meaning it is an inflationary asset. To address this issue, the developer team behind Solana Network has implemented a program that reduces annual inflation from 15% to 1.5%.
It is also worth noting that Bitcoin is open, decentralized and does not have owners such as the Internet. This aspect makes a difference from cryptocurrency similar to the operations of companies that generally have market share.
Another issue to highlight is that BTC’s market capitalization is 168.9 billion.The signEnglish), and Currently, it is the ninth most valuable asset in the world.
On the other hand, Sol’s value is $650 million, which means it does not consolidate the top 100 most valuable in the world. This will give you much less confidence in this cryptocurrency than Bitcoin.
In addition, more and more businesses, financial institutions, and states are integrating BTC into the Treasury as a reserve asset, including compensation in times of economic uncertainty and geopolitical tensions.
Meanwhile, the price of the Sun is still recovering from the Libra scandal, the Solana Red token promoted by Argentine President Javier Mirei.
As reported by Cryptonotics, the incident occurred on February 14th. The president shared a token called “Libra” through his X account, driving the growth of Argentine technology companies. However, the user warned that their usefulness was invalid and described as memokine. Additionally, various anomalies are recorded in prices, which is why many consider it a scam.
From that moment on, Solana’s reputation was seriously affected The nickname “Casino de Memocoin” is still strugglingLabel has been accompanying her for a long time.
Despite the pressing implementation of Firedcer, an update that promises to increase Solana’s processing power to one million transactions per second (TPS), its biggest challenge needs to be integrated into a solid and reliable ecosystem.
