Analyst Gave 3 Reasons: This Altcoin Could Break Records in 2022!

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Solana (SOL), one of the strongest Ethereum competitors, has undoubtedly recorded one of the exponential growths of the year. Blockchain, which can process 50,000 transactions per second, has added another $600 million to its total locked value this year, breaking TVL records of over $15 billion with more than 40 decentralized applications. According to analyst Marcel Pechman, the altcoin project can make its mark in 2022 thanks to 3 important developments. Here are the details…

There is a strong institutional appetite for the altcoin project

Solana’s market capitalization is more than double that of Avalanche and Terra, each with a market capitalization of $26 billion. Investments in the altcoin project include an exciting series of institutional investments, ranging from the $314 million private token sale by Solana Labs to the $18 million fundraiser by Solana’s DEX project Orca in September. Also, Solana’s number of active users is about to surpass Ethereum.

Solana has the third largest futures market

Solana currently holds the third largest futures open position, the most relevant metric in derivatives contracts. Despite the drop from the $1.9 billion peak on Nov. 8, the current $860 million futures open position makes Solana the third derivatives market by size. For example, Binance Coin (BNB) futures hold $520 million, followed by Terra (LUNA) with $430 million.

Solana is a leader in TVL, users and derivatives markets

Solana also has an impressive amount of activity coming from on-chain data and derivatives markets. The network’s TVL has increased 15x in the last six months, with Solana’s DApps users reaching almost half of the users on the Ethereum network. According to the analyst, Solana is quickly closing the gap with competitors such as Terra, Avalanche and Polygon in terms of TVL, active users and derivatives markets. Marcel Pechman, whose analysis we shared as Somanews, thinks that Solana may increase in 2022 with the 3 factors we have listed.