Earned 260% on Ethereum and bought the “Ethereum killer”

At the beginning of 2021, the Solana altcoin (SOL) was worth about $ 3, and at the time of this writing, it has already reached the $ 157 mark. That is, in less than 10 months, the cryptocurrency has risen in price 52 times, and the $ 1,000 invested in the coin in January would have turned into $ 52,000. The Ministry of Finance decided to join the rapid growth of the new altcoin and invested its own funds in it.

Crypto portfolio yield – 100%

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Unlike investments in the stock market, which show returns within a few percent, the cryptocurrency made it possible for the Ministry of Finance to make good money. Now the return on this portfolio is almost 100%. In hryvnia equivalent, the editorial staff earned UAH 15 356 with investments of UAH 16 thousand (including commissions for the purchase of assets).

First of all, this profitability is provided by investments in Ethereum, which has risen in price by 260%, and Bitcoin, which has added 80%. Not significantly, but Cardanol has also grown. But most of the altcoins that we hold in our portfolio (Ripple, Finance Coin and Lite coin) have lost between 14% and 43%. It saves us that we invested smaller amounts in them than in Bitcoin and Ethereum.

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In the coming months, our cryptocurrency portfolio may grow even more significantly. According to experts of the Hudoba Global exchange, there is now a potential for growth in the value of bitcoin and Ethereum. The number one cryptocurrency value is pushed up by two main factors. First, on October 18, the first US exchange-traded fund for bitcoin futures, the Bitcoin Strategy ETF from Pros hares, began trading.

This means that institutional investors who previously could not directly buy such assets can now invest in cryptocurrency. In addition, the Bitcoin Strategy ETF will not remain the only US cryptocurrency-focused fund for long. There are several more similar applications under consideration by the US Securities and Exchange Commission (SEC). And the SEC will no longer prevent crypto ETFs from emerging.

Secondly, Chinese investors began to actively invest in cryptocurrency amid further restrictions on the power to withdraw capital. The more actively the Chinese authorities tighten the screws, the more money will flow into crypto assets.

“At the same time, no one knows how long this will continue. Most likely, the upward trend in the price of these cryptocurrencies will continue until the end of the year. After that, a new bear market awaits us, similar to 2018-2019, “analysts say.

Anshe Kovalchuk, chief cryptocurrency strategist at Tomax, also speaks about the further growth of cryptocurrencies in October. “Bitcoin has a chance of updating its historical highs and reaching the level of $ 68 thousand per coin. Confidence in the forecasts is backed up by the market reaction to the total ban of the People’s Bank of China from conducting cryptocurrency transactions. Despite the fact that the use of digital assets in the country is now equated with illegal financial activity, bitcoin in September did not fall below $ 40 thousand and very quickly returned to growth, “the specialist explains.

Among the factors that help the crypto market grow as a whole are rising inflation and turbulence in the stock market: investors view Bitcoin as a defensive asset.

What is Solana

The Ministry of Finance decided to increase its portfolio of altcoins. We turned our attention to the “killer of Ethereum” – Solana, which has shown staggering growth this year.

Solana is an open source blockchain project. It employs several breakthrough technologies of the next generation Daps – decentralized applications required, for example, for user identification, storage of funds, online bids, auctions, settlements, etc.

Now the vast majority of Daps operate on the basis of the Ethereum ecosystem, which to a large extent attracts the attention of investors to the last. At the same time, the rapid rise in the price of ETH creates problems for the development of technology, because the network is overloaded, and fees are growing.

Therefore, to put it as simply as possible, Solana is actually a new player on the Ethereum field. This blockchain was created for virtually the same purposes, but at the same time it works faster and does not suffer from architecture problems. Experts call SOL the fastest blockchain that exists today. In addition, the network has low transaction fees – 0.000005 Solana, which is about 0.00079 cents.

Why Solana is getting more expensive

The Solana project was founded back in 2017, the corresponding SOL token (an investable coin) appeared only in March 2020. Let’s face it, the time to start was not the best. It was then, following the stock market, that the cryptocurrency market collapsed. Bitcoin fell below $ 5K

After its appearance and in fact until the end of 2020, the SOL rate ranged from $ 1 to $ 3. And it was only at the end of summer that really unrestrained growth began. In early September, the altcoin price reached its all-time high of $ 214, after which it rolled back insignificantly.

This growth has been driven by the technological efficiency of the blockchain. Solana debuted in the NFT sector, selling a collection of 10,000 monkey images in just 8 minutes.

At the same time, the Solana developers note that the ecosystem is only accelerating and, over time, must process 60 thousand transactions per second. This is almost as much as Visa is now able to process, although some observers are convinced that the card system is several times weaker.

However, not always everything goes smoothly. On September 14, a large-scale failure occurred in the Solana blockchain: new blocks did not go online for more than 16 hours.

Now the altcoin price is being pushed not only by the growth of the number one cryptocurrency, but also by the information about the “burning” of SOL. This is something like an emission, on the contrary, when some of the coins are withdrawn from the market and there is a shortage of them.

Due to the combination of these factors, the price of Solana could reach $ 500 by the end of the year, according to Mercury.

See also: On Amazon, eBay and Aliexpress it will be possible to buy with cryptocurrency