This Is How Much Solana (SOL) You Need to Buy to Become a Millionaire

Solana, one of the more prominent Layer 1 blockchains, has attracted attention from the crypto community for several years. Its native SOL token is trading 95% below its November 2021 all-time high.

Often, major collapses cause newcomers to sell their assets in a panic. However, experienced traders take advantage of the lower prices to buy coins as part of their long or medium-term investment strategies.

What is the Outlook for the Solana Ecosystem?

We calculate how much you need to spend to become a SOL millionaire in the next bull run.

The Solana project was founded in 2017 by Dr. Eric Williams, a former particle physics researcher, BREW OS developer Greg Fitzgerald, and Qualcomm engineer Anatoly Yakovenko. The group launched the Solana testnet after securing over $20 million in a Series A funding round.

In March of the following year, they released a beta version of the Solana testnet with basic transaction functions. In the same month, they raised $1.8 million in an initial coin offering and soon secured a further $314 million through a funding round led by Andreessen Horowitz and Polychain Capital.

Solana’s popularity can be attributed to several factors:

• Team

SOL is backed by a strong development team with many years of experience.

• New Technology

Solana’s consensus algorithm draws on ideas from proof-of-stake and its own proof-of-history mechanism. The approach improves speed and efficiency and offers a reliable and secure transaction history.

• Community

A healthy community of developers, investors, and partners has supported Solana during difficult times.

• Ecosystem

Presently, over 350 projects are working on the Solana blockchain. In September, SOL’s market capitalization grew to $8.02 billion, causing it to round off the list of the top 10 crypto assets by market cap.

Still, the blockchain has some notable disadvantages, including frequent outages and concerns it is too centralized and opaque.

Find out more about Solana here.

How Much SOL You Need to Buy to Strike Gold

You can use the formula below to calculate how much SOL you need to buy to become a millionaire when SOL reaches its all-time high of $259.96.

SOL required = Target Amount/Expected Price

Where:

• Target amount – $1 million
• Expected Price – Previous all-time high of $259.96

Using the above formula, it appears that you need to buy around 3,846.19 SOL to earn $1 million during the next bull run. At the asset’s current price of $9.83, the coins will be worth around $76,269.

SOL/USD price has declined 95% from November 2021 | Source: BeInCrypto

However, the volatility of the crypto market and so-called black swan events can affect this calculation, which is based on existing data and assumptions. It is prudent to practice robust risk management and only invest money you can afford to lose.

Understand the risks of investing in decentralized lending protocols here.

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