In this video, I am going to discuss why I went all in on Solana.

 

I’ve been talking about Solana (SOL) for a while now, if you are in my crypto inner circle, you’re probably sick of hearing about Solana. If you aren’t, well you missed out on buying it when it was only $22. Since the buzz has not slowed down on the project, I thought I would share with you my thought process so you can either grab a bag of SOL or just understand how to do research on projects in the future.

 

I just went all in on one coin and in this video I’m gonna share with you exactly why I went all in on this one coin and how I came to that conclusion and just how much money I put into this project so first of all let’s make my face a little bit smaller and let’s jump right in so what coin am I talking about I am talking about Solana so the coin is sol it’s currently at a 51 billion market cap at 171 per coin and the circulating supply is 297 million out of 505 million.

Now it is an inflationary coin and we’ll look at how much it actually inflates so right now it started at an inflation rate of eight percent and it’ll reduce by 15 per year until the long-term inflation rate is reached of 1.5 percent which should take place in about 10 years it’ll hit its its long-term inflation rate so overall it’s not bad I always like to consider token metrics than the team behind them and then the fundamentals as far as like what’s the utility of the actual project and the tech behind it and we’re gonna go into some of those things.

So you know off the bat token metrics don’t make me scared there’s some projects that inflate way way too quickly or have barely released any of their supply yet but you know for this type of a coin just on the smart contract platform like Solana that’s growing very very quickly it’s actually smart to have a little bit of inflation as the chain actually scales and the ecosystem grows so you know one of the the first thing that turned me on most to them is first of all that they’re in the smart contract sector within crypto which is they have their own blockchain where other decentralized applications can build on top of them.

So every single transaction on the blockchain as the whole ecosystem grows it uses the native coin of sol which is the actual utility of the coin that’s one of one of the use cases of it so those are the projects that I love investing in because they create this network effect and ecosystem that actually has real use of the coin a lot of projects in crypto don’t even have like a real use of of coins to be honest so I always like to see coins that they’re projects that have real utility the second thing that that really brought my attention to it was them raising 314 million from some of the biggest VC firms in the world.

So Anderson Horowitz Polychain capital Almeda research and then you know which Almeida is owned by Sam from FTX and then Sam has subsequently built SRM and he’s built he’s helping the whole Solana ecosystem grow because he understands that well it’s not practical for a billion users to try to scale on Ethereum that does 12 transactions per second we should probably help a blockchain that actually works right now here today.

We should probably help this that ecosystem grow and that’s why he’s putting in a lot of his own money into Solana and also helping the entire ecosystem grow by putting on decentralized exchanges on the Solana blockchain and a handful of other things so I always like to look at what are the smartest minds in crypto doing such as Sam from FTX or these other major VC firms where are they putting a large amount of money into these things you can see this is actually this article was posted on June 9th and the price of Solana wasn’t even that high then.

I mean it was like it was right here so the price of Solano is only at 41 42 bucks if you’re in some of our groups which you can join in the description below you know we’ve been buying Solana since 20 right I think the lowest we bought it was like maybe 18 bucks we bought a lot around 30-40 bucks and then as it like started to take off we’ve we’ve locked it into profit and then bought more as we started to have higher lows here so Solana like that’s one thing you guys should look at is like where is the big money going and you can actually go look at those companies and those VC firms and follow what they’re actually buying so you can go ahead and like google search these these different firms and see what their holdings are and then and also see where they’re putting large amounts of money into which is you know usually a pretty good idea to see where you know the large large money’s going.

We’ll go ahead and continue on to the Solana’s blockchain so one of the most valuable things about crypto is actually being able to see what is happening on the blockchain that’s why I love cryptocurrency because there’s something called chain metrics and you can see all of the data that’s actually running through the blockchain so all the transactions the number of wallets if they’re growing or slowing down if you know longer term wallets are are selling or buying how much each individual wallet is buying you can see the transactions per second right.

Here you can see there’s 31 billion transactions on Solano so far and this is a relatively new project so that’s actually you know quite a lot you can see all the transactions per second okay 14 minutes ago there was 2 100 transactions per second 12 minutes ago there was 2 100 transactions per second and you can see all this data right here so very very very valuable data that’s shown right on these different companies such as explorer this is just one website that you could go on and actually view what is going on in these different blockchains.

I also like to look at the supply to make sure that it’s not too centralized if you go look at like doge’s you know over like 40 of doge is owned in like five wallets in the top five wallets the top wallet with Solana yes there is a lot of VC money and there was a lot of money raised privately but you know it’s still somewhat decentralized because it is on a bunch of different wallets the largest wallet has 3.9 of sol which isn’t a significant amount.

I like to see this I don’t like to see them higher than 10 that definitely puts things at risk for you know one person just holding a ton of the supply and then just dumping a lot of the coin on anyone that’s that’s holding right a lot of times retail gets screwed over by these big whales or just by people they got it super super early into a project just held on and they’re like hey I just want to cash out now so that’s always something to look into is actually go on the blockchain make sure there’s activity on the blockchain okay.

And then also go look at the wallets and the sizes of the wallets and you can actually see what’s going on with the wall like you can actually click into each wallet and see what the balance is all their transactions oh 13 days ago right they had another transaction you can click on each transaction and you can see exactly what happened with that transaction how much value was sent where it came from all those things another thing that’s incredibly important in crypto and specifically in smart contracts which again I do believe is the most valuable sector within crypto.

I put the vast majority of my money into smart contracts because I think they have the most utility and another thing you need to understand is the vast majority of crypto is retail driven okay so let’s look at what retail is doing what is retail doing they are buying NFT’s like crazy so what I instead of me investing in NFT’s I just like to invest into blockchains that are helping NFT’s launch and for example Solana has had a significant increase in the amount of NFT’s that have been launching on the blockchain.

You can see the market capitalization of their NFTs is over 1 billion now it’s grown 24 and that’s some significant growth so it’s not as much as a Ethereum obviously yet but you know when people are paying three four hundred dollars just to buy an NFT on open c through Ethereum it you know if the if the NFT is not worth a lot of money it doesn’t make sense to go like buy NFT’s in that platform so a lot of people and developers are switching over to Solana because the cost is so much lower which you’ll see here in a second.

Another thing that you know I looked into and it’s really valuable to look into into projects is having a large amount of total total value locked so like I really like this look at projects hey how much of the project is actually being staked how much of the value is actually locked because that just shows that you know there’s people that actually believe in the project and then again you know what what’s the the growth of the NFT’s because that drives crypto a lot because you know most of retailers are buying NFT’s another thing is actually the tech behind.

So this is the first thing that caught my attention about Solana is it’s just superior to almost you know every other blockchain and I’m sure there’s going to be lots of arguments of oh well once this upgrade happens and once this happens and blah blah blah blah.

Well I mean let’s look at what has actually happened right what is actually working what’s actually driving traffic and I haven’t seen the back end of Solana but I’ve heard it’s actually very very easy for other developers to launch on top of there so that’s another thing you need to look at like think about why apple is so such a massive company while they’re worth over two trillion dollars it’s because they’ve made everything incredibly easy and simplistic right if you go to their website it’s like the easiest thing in the world to go buy you know a five thousand dollar computer right or a 1200 iPhone right.

They make everything so simplistic and easy and that’s what I’ve heard the back end of Solana looks like but also the tech behind it like I said the current TPS up here that’s transactions per second so you know one of the major features that you should look at and specifically smart contracts and blockchains is how scalable is it because again that’s the problem that Ethereum is having right now Ethereum does between between like 12 to like 30 transactions per second Cardano does between like 250 and a thousand transactions per second Solana does between like 50 and 65,000 transactions per second.

So they absolutely crushed pretty much everything else some of this data is actually incorrect and it’s actually a little bit dated but for the most part it it like Solana is way ahead of these other chains you can see Ethereum 2.0 is supposed to be a hundred thousand transactions per second but the problem is is it hasn’t launched yet and it’s not going to launch until next year so like the bull market could be over by the time Ethereum 2.0 even comes out and I mean if you guys know anything about you know launching major upgrades on chains there’s always glitches and problems with it so right now I really do think that Solana has vastly superior technology relative to to other blockchains.

You can also see the block time is significantly lower at 0.4 seconds the transaction fee is very very low and then another thing I like to see is the number of applications growing significantly you can see it says 302 but obviously a lot lower because this is also saying that the market cap this is of 8, 30, 20, 21 as you can see the bottom left-hand corner but the number of applications have grown significantly because the ecosystem has grown significantly because they have good tech and it’s actually easy to build on top of their chain right.

So the number of applications how quickly is that growing or or not growing and then also the founding year I like to look at chains that are not too old because if they’re too old they likely have some dated tech but if they’re like two to three years old that’s kind of been the sweet spot where it actually like they have enough data and history behind building the actual project but they’re not too old to the point where they have bad tech so I like to see like two to three years old as far as the projects or at least significant upgrades recently.

So that’s another thing that I’ll look at one of the last things I like to look into before investing into a project is to look in what is going on behind the scenes so you can actually go look at their GitHub if you just go to coin market cap and click on source code it’ll take you straight to their GitHub if they have one not every single project has it but most most projects actually do so this is a good way to make sure that there it’s actually a legitimate project first of all you want to make sure that there’s actually a lot of you know people and developers that are actually working on it and then also repositories so making sure that there is actually activity it was updated just now updated one hour ago updated eight hours ago so they’re actually like making updates.to the project and to the code behind the scenes that’s that’s running the blockchain.

So that’s another thing that it’s obviously I’m not a coder I’m not a super tech nerd I don’t know exactly what’s going on with every single thing that they’re doing with all of their code but I just like to see that okay there’s actually work being done on this project it’s not someone that like literally just launched the project put a bunch of marketing dollars behind it and then wants to pull out all their cash out of it once retail you know buys it that’s called a rug pull so that’s always something really really important to watch out for and make sure that there’s actually real activity in real developers and you can literally go click on these developers and go like look into who they are.

So that’s another thing I really enjoy looking at but anyways I’m gonna kind of give you my idea of where I think it could go and I think Solana actually has a relatively large growth ahead to be honest I do once again I do think they have superior tech to nearly any other chain and obviously they have mass adoption right now i still think they’re undervalued even though they’ve taken off significantly.

I mean if you look at a chart it’s been a pretty ridiculous growth recently but you got to look at not the price of the coin you need to look at the market cap so the market cap is at 51.9 billion right now okay what is Ethereum at it’s at 400 billion finance coin is at 72 billion Cardano’s at 72 billion so like I think it’s realistic for Solana to get up to about a 200 billion dollar market cap I wouldn’t even be surprised that they jump into 300 billion but we’ll see like and that’s that’s based on you know the market growing as well.

So if bitcoin and the whole market went down I don’t think Solana’s gonna go up to 200-300 billion as everything falls and drops but if the market does continue up and we do have a great end of the q4 and and maybe a good start to next year I do think that it’s realistic for Solana to go up you know closer to about a 200 billion dollar market cap which would put it at right around 680 bucks per coin so I think realistically right around 600 to 700 is pretty realistic for the top of Solana or sol this market cycle anyways.

I hope you got value from this video if you did show me by hitting the like button and let me know what you think of sol below are you buying Seoul or are you not buying Seoul why or why not and if you get consistent value from my videos I would greatly appreciate you hitting the subscribe button we are working on getting over to 20k subscribers I think we’re at like 18.5 or something right now so we greatly appreciate your support still about 76 percent of you people that are watching the channel are not subscribed doesn’t take too you know too much effort literally hit the red button it’s free and like I said you’ll likely make a lot of a lot of money from just watching my videos all right thanks so much for watching and I’ll see you here on this next one

Published On: October 7, 2021 / Categories: How Tos / Tags: , , , , /