In short, buying SOL is essentially because the Solana chain is the most likely to become a high-performance consumer application chain and the main battlefield for meme coins in the coming years.
First, let’s talk about high-performance consumer application chains.
In the past, it was difficult to use USDT directly for consumption. The reason is simple: the gas fees of mainstream public chains are too expensive, and transactions are slow.
However, since high-performance public chains like SOL have been launched, everyone’s on-chain activities have become much more active, transactions are settled in seconds, and the gas fees are less than a cent. So now, almost all mainstream exchanges have issued their own U cards.
For web3 to become a reality, it must not directly force users to change their lifestyle habits, but rather match web2 users first, and then subtly change everyone.
For SOL, there are mobile phones, an app store, QR code payments, as well as meme, DePIN, mini-games, social media, etc., which basically match the usage habits of web2 users. Of course, this ecosystem is still too early and doesn't attract users yet. But it’s undeniable that Solana, thanks to the explosive applications of MEME coins, has significantly surpassed traditional high-performance public chains like Polygon and BSC in transaction volume.
From the current perspective, if web3 becomes a reality in the future, SOL is likely to be the most widely used token.
Second, it is the meme coin new issuance.
Before pump.fun came out, ordinary investors basically couldn't participate in the primary market. It can be said that pumpfun changed the way tokens are issued, introducing a new way of excitement in the crypto world.
The recent surge in the prices of pump and bonk coins is largely due to this exciting model, which appeals to the gambling nature of most retail investors.
Even if they know that only 3% of people make money, they still can't suppress their enthusiasm for gambling.
So before new products that cater more to the gambler's mentality come out, meme coins will continue to ensure the activity of SOL and generate gas fee income for SOL. SOL will always be a winner of the meme coin dividends.
Third, finally, is the expectation of the spot ETF.
The ongoing applications for SOL's spot ETF have continuously released new updates, and this batch of potential new funds is one of the major expectations for SOL recently.
In fact, aside from the potential funds that may come with the approval of the ETF, some companies and institutions are already stockpiling SOL.
For example, the publicly listed company DeFi Development Corp has a total holding close to 1 million; for instance, SOL treasury company Upexi has a total holding of 1.82 million; and the largest meme coin in the SOL ecosystem, PENGU, has reached a market capitalization of 2.785 billion dollars.
Of course, the recent favorable 401(K) pension policy, the expectation of a Fed rate cut in September, and the market's FOMO sentiment are the main reasons for this recent surge, many people have probably mentioned this, so I won't elaborate.
