- 24 September 2024
- by Andrej Fedek
- Blog, Business, Finance, Fintech
- 0 Comments
Solana is considered one of the most discussed blockchain platforms. It has also fuelled discussions about what is behind the increase in the value of the self-scribed token SOL. While some people believe that everything related to Solana marketing contributes immensely to the price of Solana coin, others will disagree and say that the solution is purely technological. Thus, one has to focus on how the balance between marketing and fundamentals will affect Solana in the future.
For a better understanding of the fluctuation of Solana’s value over time, one needs to study the Solana price chart. This chart gives the current value of Solana coin and the fluctuations that occur in relation to various factors such as the general perceptions of the market as well as occurrences in the market. Analyzing the Solana chart, investors can find out the details and determine whether the outside circumstances like marketing or something inside the blockchain – organic enhancements contribute to the changes in the price of SOL.
Understanding Solana’s Fundamentals
It’s important to first outline some general assumptions that have set the stage for marketing to play its part — these have positioned Solana as one of the strongest contenders in the blockchain industry. It was in the year 2020 that Solana came into existence and it was intended to solve some of the major scalability challenges that have come with blockchain technology especially to Ethereum. It has the capability of handling high velocity of transactions, whereby it is capable of handling sixty five thousand TPS at a considerable amount of cost. It has made Solana suitable for use in decentralized applications (dApps), non-fungible tokens (NFTs), and decentralized finance (DeFi).
Proof of History or PoH is another technological characteristic of Solana which can be considered as a consensus algorithm. This approach means that transactions will be executed at a faster rate since the cryptographical algorithm used to review the sequence of events before being entered in the blockchain is adopted. Coupled with low transaction fees, POH has made Solana attractive to developers and businessmen to deploy scalable blockchains at a cheaper cost.
The second reason that has favored Solana’s success is the presence of a robust ecosystem. Over time, the network has managed to capture numerous projects including NFT marketplaces such as SolSea or DeFi platforms like Serum. In particular, the increased interest towards investment accentuated by active implementation of these projects has contributed to the network strengthening, making Solana one of the best examples of modern blockchain platforms in terms of the number of users and processes handled every day.
Marketing’s Role in Solana’s Success
Of course, Solana has a sound technological foundation, but marketing is fundamentally important here to create demand for SOL. Despite all the power of cryptocurrencies in the modern world, it is important to remember that, in the usually heavily saturated field of cryptocurrencies, being seen and perceived by the public is as valuable as any technical advantage. It has been seen that Solana’s marketing team has been very calculated and intentional in positioning the blockchain solution through key messaging of efficiency in comparison to Ethereum.
With reference to Solana’s marketing campaigns, one of the most notable factors noticed has been the capacity to capture important partnerships and endorsements from key players. Publicity with leading brands, for example, the connection between Solana NFT and different sports teams, as well as personalities have been successful. For instance, in 2021, Solana hosted what is known as “Solana Breakpoint,” a conference designed to present the possibilities of the network to developers, investors, as well as other stakeholders. Situations like these, show how marketing may stir emotions and attract attention towards a project hence raising its price.
Furthermore, Solana practices an aggressive social media sharing policy and has built its fan and investor base. Through the interaction of customers on social sites such as Twitter, Reddit, and Telegram, Solana has created a paradigm shift where investors are encouraged to hold SOL in the long run. Public personalities and other personalities within the realm of cryptocurrencies often engage in discussions about Solana which makes it more popular and helps attract more people.
How Marketing Affects Solana’s Price
Therefore, it can be clearly stated that company’s marketing initiatives have a clear correlation with the Solana price. In the short run, SOL may experience significant value increments occasioned by a well-coordinated marketing exercise or a stupendous partnership deal. As an example, when Solana partnered with the decentralized exchange Serum, the price of SOL rose sharply since more investors expected the token’s demand to rise.
But pricing made by marketers can be also unpredictable and that is why prices can increase drastically in a short period of time. Marketing awareness and some zeal creates a pull phase which results to buying, hence causing an increase in the price. However, if these prices are high and there is no fundamental backing, the prices start correcting very sharply once the initial hype dies. This is especially apparent with the prices of cryptocurrencies, which boast high volatility because of speculation.
A typical example of this was witnessed in September 2021 as Solana rose to its highest price, driven by Media coverage and marketing and the growth of the NFT ecosystem. Soon after this, Solana’s price suffered a correction, following which Solana had its corrected value in accordance with the market fundamentals.
Marketing vs. Fundamentals: Which is more important?
So, which drives Solana’s price more: which are more applicable in the field of marketing or fundamental concepts? This could, however, be solved by working in the middle of both types of economies. Marketing is critical because it would help in introducing the brand and the project to many people who might not have known of its existence. But all these positive results are prone to be short-term if the fundamentals are not put in place.
In a long-term perspective, it is necessary to take into account both factors while analyzing Solana’s outlook. Indeed, sometimes marketing offers short-term wins, but the longevity of these wins depends on the network’s capacity to fire on all cylinders. Therefore, sufficient supporters, comprehensive project fundamentals, and the right marketing strategies indicate Solana’s potential for both short and long term earnings.
Andrej Fedek is the creator and the one-person owner of two blogs: InterCool Studio and CareersMomentum. As an experienced marketer, he is driven by turning leads into customers with White Hat SEO techniques. Besides being a boss, he is a real team player with a great sense of equality.