Making crypto trading decisions is difficult because this market is volatile. You need to consider many factors like currency strengths, market trends, and project specifics. This post will help you decide whether to invest in HBAR or SOL.
Overview of HBAR
HBAR is the native token of the Hedera network — a decentralized public ledger. Hedera uses a directed acyclic graph structure. Apart from making it unique, this structure allows improved energy efficiency and faster transactions.
Hedera can handle thousands of transactions while keeping transfer fees low. It has a strong governance council, with international corporations leading the community. That ensures the network focuses on enterprises and the usability of Hedera and HBAR for business-level purposes.
Overview of SOL
Solana could easily be described as an Ethereum alternative. It didn’t hide the purpose of serving as a layer-1 blockchain to build decentralized apps. The developers aimed to create a platform that would be more scalable than Ethereum, which would secure improved transaction speed and energy efficiency.
The ecosystem is developer-friendly, making it easy to build or port dApps to this blockchain. That played a vital part in growing a community that already has many apps in different categories.
As with other similar blockchains, Solana supports smart contracts. If you are looking for other potential assets, you can compare TRX vs DOGE to see if that’s a better fit for you.
Key Considerations for Traders
Here are some critical things that traders should assess when choosing HBAR or Solana:
- Market liquidity. Cryptocurrency liquidity contributes to its stability, decreasing the risk of a dishonest individual or group disrupting the asset’s price. Hedera has a market cap set at over $4.6 billion, with a daily trading volume of over $1.5 billion. Solana has a trading volume of around $7.4 billion, but its market cap is $114.5 billion. All this indicates that SOL’s price is tougher to manipulate, although HBAR is also valuable enough to leave little room to affect prices intentionally.
- Volatility analysis. Cryptos can drop by 10% and then gain 20% — all this in less than 24 hours. Analyzing the maximum and minimum values, as well as current volatility trends, can help you decide when to enter and exit a certain trading position.
- Technical indicators. Some tools you can use include Bollinger Bands, Relative Strength Index (RSI), or Moving Averages (MA). These can help predict price turnaround and how an asset’s value will behave in the future. If we compare prices within the last month or year, we see that HBAR and SOL are both experiencing growth trends.
Technical Strengths and Weaknesses
The specific consensus protocol that Hedera uses makes it different from standard blockchain projects. Many investors find that attractive, especially since it secures using less energy and decreasing the carbon footprint.
Hedera has a strong focus on regulated industries. You can see that Google, IBM, and other reputable companies are a part of its governing council. The downside is that these corporations bring certain centralization concerns. Another weakness might be the ecosystem, which currently doesn’t host as many dApps as Solana.
Solana has a constantly growing ecosystem with NFT and DeFi solutions, along with a variety of apps in other categories. The network offers excellent stability since it can handle a large transaction volume smoothly.
Thanks to the PoH consensus, it can also add a timestamp to transfers, which increases transaction speed. The problem is that Solana has experienced network outages, and some users worry about the network’s security and reliability due to these problems.
Making a Decision: HBAR or SOL?
From an investor’s perspective, HBAR might be an option worth taking. The governing council ensures focus on institutional investors and complying with relevant regulations, making it a safer choice. Solana is, however, well-developed, with an ecosystem that contains hundreds of apps. It also has fast transactions with low costs.
In other words, both networks have advantages and downsides. We’d recommend using relevant technical tools to see which investment is better at the specific moment when you want to make a trading move.
