Since its initial coin offering (ICO) in March 2020, Solana (SOL) has appreciated over 300 times in value. To put this into perspective, a $500 investment in Solana during its ICO would be worth over $150,000 in August 2021. While Solana has gone up in value significantly, it’s for good reason. Solana is a smart-contract-enabled blockchain with high throughput and low fees that aims to give Ethereum a run for its money.
While the majority of gains from Solana are likely behind us, you can still find plenty of ways to make high returns through investing in Solana’s decentralized finance (DeFi) ecosystem. Similar to Ethereum, Solana is a platform for projects to build on, with decentralized exchanges (DEXs) and non-fungible token (NFT) platforms leading this innovation.
What is Solana?
At its core, Solana is a platform for decentralized applications (DApps). Developers build infrastructure on Solana’s blockchain, similar to how developers made protocols like Uniswap, Chainlink and 0x on Ethereum. However, Solana has clear benefits that may incentivize developers and users to migrate to its blockchain from Ethereum’s.
Solana uses a proof-of-history consensus model to secure its blockchain. Through using this novel consensus model, the platform can process thousands of transactions per second, whereas Ethereum can only handle around 30 transactions per second. What’s more, Solana makes it easy for developers to port over their protocols into Solana’s ecosystem, adding to the amount of infrastructure on its blockchain.
Solana vs. Ethereum
Solana’s closest competitor is Ethereum. Both blockchains host DApps and have their own unique benefits. Ethereum’s ecosystem is far more developed than Solana’s, with thousands of developers building interoperable applications where users can perform advanced financial functions without the need for an intermediary. Also, Ethereum’s blockchain offers more liquidity, which is a critical advantage when it comes to finance.
Plus, Ethereum’s blockchain is much more decentralized, making it more censorship-resistant and secure. Solana currently has about 600 validators on its network, which is about ⅙ of the validators Ethereum has. Regardless, Solana is one of the more decentralized networks within the blockchain industry.
However, Solana’s clear benefits continue to draw users to its blockchain. For one, Solana can process transactions much faster than Ethereum’s network. Transaction speed is extremely important for applications like derivative exchanges and NFT gaming. Also, it costs far less to transact on Solana, making it a better option for retail traders without large amounts of capital.
Best DeFi Projects on Solana
With such a new ecosystem of decentralized applications, Solana presents a unique opportunity for massive returns if you can find the right projects to invest in. However, with little regulation of the Solana ecosystem, you have to watch out for scam coins. Before investing in any cryptocurrency, be sure to do your own research so you can be confident that your cryptocurrency is likely to perform well over your investment horizon.
The projects deemed to be the best projects on Solana are those with a solid foundation, relatively large user base and a strong team of developers. Another important factor considered while compiling this list is how likely a project is able to compete with its Ethereum counterparts through using the benefits of Solana’s blockchain.
Serum (SRM): The leading DEX on Solana’s blockchain. The protocol has all the benefits of decentralization while keeping key features investors are used to on centralized exchanges. Whereas DEXs like Uniswap and PancakeSwap are automated market makers (AMMs) that let users swap between cryptocurrencies, Serum is a full-featured exchange with limit orders and leverage trading. Using order books on DEXs on Ethereum are infeasible, as the data needed to do so can’t be uploaded to its blockchain efficiently. You can buy Serum on the FTX exchange.
Star Atlas (ATLAS): The 1st and largest NFT gaming platform coming to Solana on August 26, 2021. The game is set in space, and users will be able to explore the virtual reality universe and own spaceships, visit planets and battle against other players. The initial sale won’t be available to U.S. investors, but the ATLAS token should be listed on DEXs, such as Serum, shortly thereafter. Solana has the potential to outcompete Ethereum in the NFT gaming space, as its blockchain can handle transactions so much quicker and at a fraction of the cost. Speed is especially important for gaming because users need quick settlements while interacting with a blockchain-based game in real time.
Raydium (RAY): The 1st automated market maker on Solana with 1st mover advantage in this space. With nearly $1 billion locked in its smart contracts, it’s one of the most widely used decentralized applications in Solana’s ecosystem. Similar to SushiSwap on Ethereum’s blockchain, Raydium has a project accelerator called the “AcceleRaytor” that helps new cryptocurrencies launch with liquidity on its platform. With such a large user base and sufficient liquidity, RAY is among the most established projects on Solana’s blockchain. You can buy Raydium on the FTX exchange and Uniswap.
Arweave (AR): A decentralized storage solution based on Solana’s blockchain. The project has funding from some of the highest tier venture capital firms in the space, including Coinbase Ventures and Andreessen Horowitz. The project introduced novel ideas of profit-sharing communities that incentive developers to use the platform, granting those who contribute to the ecosystem equity instead of selling equity to investors in presale or seed fundraising rounds.
Audius (AUDIO): With over 100,000 artists, 5 million listeners and a partnership with TikTok, Audius is primed to be the next generation of music streaming services. Through smart contracts and blockchain technology, Audius aims to replace centralized streaming platforms like Spotify and Apple Music. You can buy AUDIO on the FTX exchange and Uniswap.
How to Use Uniswap
Luckily, a lot of projects that are on Solana can also be accessed via DEXs on Ethereum. Uniswap is a great way to gain access to tons of new cryptocurrencies, and you don’t even need to make an account to use the platform. You will, however, need an Ethereum wallet to use Uniswap. If you don’t already have an Ethereum wallet, Metamask is among the best wallets for using DeFi, and it’s free.
Once you’ve downloaded a software wallet, you’ll need to send Ether tokens to your wallet’s address. Once your Ether is in your wallet, connect your wallet to Uniswap to gain access to thousands of cryptocurrencies that aren’t available on typical exchanges like Coinbase.
Need help getting your hands on some Ethereum? Check out some of the top U.S. exchanges that allow you to easily buy Ether tokens.
Commissions
Account Min
$0
1 Minute Review
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
Best For
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
Pros
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
- Higher fees than competitors
Commissions
. 25% or less
Account Min
0.00001 BTC
1 Minute Review
Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
Best For
- New investors looking for a simple mobile and web app
- Experienced investors who need a more advanced platform with more tools
- Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros
- Easy and quick signups — can get started in as little as a few minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
Cons
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Commissions
FREE
Account Min
$10.00 USD
1 Minute Review
Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users.
When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments.
Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.
Best For
- Cryptocurrency investors looking for a wide selection of supported projects.
- Investors who prefer mobile trading.
- Anyone interested in earning interest on their crypto investments.
Pros
- Simple, straightforward and intuitive mobile platform
- Wealth of investment opportunities
- Allows users to earn interest on select crypto investments
Cons
- Only available for mobile users — no desktop platform
- Limited routes to contact customer service team
Altcoin Investing
As a general rule of thumb, you’ll take on more risk investing in small market cap altcoins than investing in established, large market cap altcoins. Before investing in any cryptocurrency, be sure to do your own research. Some key factors as to whether or not a project will perform well are its user base, development team, community and product market fit.
Best Cryptocurrency Wallets for Solana
No matter which cryptocurrency exchange you choose to invest on, it’s a good idea to also use a cryptocurrency wallet. Cryptocurrency wallets give you custody over your cryptocurrencies, adding a level of security that exchanges don’t have. Plus, using a software wallet grants you access to all the decentralized protocols built on Solana.
Best Hardware Wallet: Ledger
Ledger has been making cryptocurrency hardware wallets since 2014, and it’s the most popular wallet among cryptocurrency investors. Hardware wallets are physical devices that store access to your crypto offline, making it impossible for a hacker to steal your funds via the internet.
Plus, the Ledger Nano X and Ledger Nano S support thousands of different cryptocurrencies. More likely than not, you’ll be able to store all your digital asset investments on a single device with Ledger.
Best Software Wallet: Phantom Wallet
A software wallet is necessary for interacting with DeFi protocols. If you have Metamask, Phantom is a similar wallet, but it’s built for Solana’s blockchain. Ethereum software wallets don’t work with Solana, so you’ll need to download another crypto wallet for Solana and Solana tokens. Luckily, most software wallets available today are free to download via the Google Chrome store.
The Future of Solana
More likely than not, Solana will find its place within the cryptocurrency market. While Ethereum seems to be the king of DeFi, other projects may find a niche for certain decentralized applications. Due to the low latency and high throughput of Solana’s blockchain, projects that need to process large amounts of data may thrive within its ecosystem.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.
