12 Best Cryptocurrencies to Invest in According to Reddit

4) Solana (SOL)

Market capitalization as of August 29: $67.3 billion

Solana (SOL) is a cryptocurrency that was designed to work similarly to and improve upon Ethereum. This has been named after a small Southern Californian coastal city. It was the brainchild of software developer Anatoly Yakovenko.

Like Ethereum, Solana tokens can be purchased on most of the major exchanges. Its actual value is in initiating transactions on the Solana network, which has rare advantages. The Solana blockchain makes use of a proof-of-history consensus mechanism. The algorithm utilizes timestamps to define the next block in Solana’s chain.

Solana operates by using a combination of proof-of-history (PoH) and proof-of-stake (PoS) consensus mechanisms. The proof-of-history component represents the main element of the Solana protocol, and it is responsible for the majority of transaction processing. The PoS consensus behaves as the monitoring tool for the PoH processes, and it validates each sequence of blocks it produces. Its primary use case is to facilitate the creation of decentralized applications (DApps), with the main focus on decentralized finance (DeFi) solutions.

Solana’s distinctive scaling approach makes a strong case for those planning efficient blockchain solutions. Its focus on high-speed and low-cost operations enables it to execute thousands of transactions per second at a fraction of the cost of other blockchains. Between 1 September 2023 and 28 August 2024, the price of this token has seen a significant increase of over ~600%. Much of this increase was mainly led by the fact that it uses strong and efficient technology, has network stability, and has higher on-chain volumes.