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Wednesday, 08 Sep 2021
Crypto Notes
A weekly newsletter decoding crypto, blockchain and the entire ecosystem.
By Rohas Nagpal

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All about Solana (SOL)

Over the last three weeks, we discussed Dogecoin, Cardano and Binance Coin. This week we take on Solana (SOL).

Did you know?

SOL is the seventh-largest crypto in the world by market capitalization.

SOL has a market cap of over $54 billion

Over the past 24 hours, more than $12 billion of SOL has changed hands.

Before we dive deeper, let's check out the latest news from the crypto universe.

Legal troubles for Binance are growing by the day.

Singapore and South Africa are the latest countries to warn against the crypto exchange. Other countries include the US, UK, Thailand, Malaysia, Japan and Italy.

It's not just problems with regulators. Hundreds of investors are expected to take part in proceedings against Binance, seeking damages for money they lost during a major outage. Binance says it has no official headquarters. That has made it difficult for investors to figure out how and where to take the company to court. Swiss private equity firm Liti Capital has promised to provide a minimum of $5 million in funding for the case.

Binance is not just an exchange. It also runs Binance Coin, the world's fourth-largest crypto with a market cap of $79 billion. And then there's Binance Smart Chain, a very popular public blockchain.

1. What is Solana (SOL)?

Name: Solana

Symbol: SOL

History and overview:

Solana is one of the world's cheapest and fastest public blockchains.

It has a block time of 400 milliseconds and transaction fees of less than $0.01.

Solana's native token is SOL. Fractional sols are called "lamports", and each lamport equals 0.0000000000582 SOL.

SOL can be:

staked directly on the network

delegated to validators in return for inflation rewards

used to pay for fees for sending transactions

used to pay for running smart contracts

Consensus mechanism: Solana uses Proof of History (PoH) and Tower BFT.

The Solana Foundation is a non-profit organization headquartered in Zug, Switzerland, dedicated to the decentralization, growth, and security of the Solana network.

Solana has a very vibrant ecosystem with more than 400 DeFi, NFTs, Web3 projects.

You can follow the latest Solana Ecosystem news here.

2. Metrics

As of 7 September, its core metrics are:

Price metrics

Current Price: $186
All-time high (7 September 2021) $194.82
All-time low (11 May 2020) $0.5052

Below is the graph for SOL prices over the last year:

Supply metrics:

Circulating supply: 291,398,003 SOL
Total supply: 503,478,470 SOL
Maximum supply: Unlimited

Note:

Circulating supply is the number of coins/tokens in public hands.

Total supply is the number of coins/tokens created minus the number burned.

Maximum supply is the maximum amount of this crypto that can ever exist

Marketcap & Volume metrics:

Market Cap: $54,451,888,007
Fully Diluted Market Cap: $94,422,964,516
Volume (24h): $12,025,977,660
Volume / market cap ratio: 0.2199
Velocity: 41.25

Note:

Market cap = Current Price x Circulating Supply

Fully Diluted Market Cap would be the market cap if the maximum supply were in circulation

Volume (24h) is the fiat value of this crypto traded over the last 24 hours

Dominance measures a crypto's total market capitalization relative to the total market cap of all cryptos

Volume / market cap ratio = 24h Volume / Marketcap

Velocity = 24h Volume / Circulating Supply

Risk metrics:

  Volatility Sharpe ratio
Last 30 days 1.45 11.03
Last 90 days 1.38 4.45
Last 1 year 1.78 3.11
Last 3 years 1.77 2.98

Note:

Volatility measures the annualized standard deviation of daily returns

Sharpe Ratio measures the excess return for a given level of risk

3. Wallets

There are several mobile, web and command-line wallets for SOL.

Note: The data/graphs are from CoinMarketCap, Messari, and Future Money Wallet. Figures as of 7 September 2021.

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Rohas Nagpal is an author, an amateur boxer, a blockchain architect, a Tintinologist and a retired hacker.

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