Cryptocurrency

SOL Vs HBAR: What To Invest In?

Solana and Hedera are two of the fastest blockchains in the industry. Both have their own benefits and drawbacks, but since both projects are so young, they aren't supposed to be ideal.

But which one is a better tool for investments? Which network will perform better in terms of price? Check out our SOL vs HBAR comparison to find all the answers!

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Understanding Hedera

Hedera is a distributed ledger where blocks are created differently from blockchains. Its advantages are high speed, high level of safety, and environmental friendliness.

Hedera offers five products that work within the ecosystem:

1. HBAR - the project's internal cryptocurrency used to pay for operations on the network.

2. Smart contracts run on the Solidity programming language, which is also used in Ethereum. Thanks to this, the smart contracts of the two networks are compatible: any smart contract in Ethereum can be transferred to the more speedy Hedera network. While the throughput of its smart contracts is 10 transactions per second, it should increase in the future.

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3. File service used for distributed storage of files.

4. Consensus service that allows you to create dApps based on Hedera Hashgraph;

5. A token service that allows any user to create and manage tokens, including NFTs, without the need to write and deploy smart contracts.

Hedera's work is based on the distributed ledger technology (DLT), which writes blocks using the hashgraph algorithm. Unlike blockchain, where all blocks are written linearly, one after the other, the hashgraph uses a type of data structure called a Directed Acyclic Graph (DAG). In such a structure, data is written non-linearly, without a sequence. Projects like IOTA, Byteball, and Tangle also work on DAG.

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The performance of Hedera is 10,000 operations per second (in the future, it can grow to 500,000), the commission is $0.0001, and the block generation time is from 3 to 5 seconds.

HBAR Price Prediction

According to Cryptopolitan.com, Hedera is a real competitor for such networks as Ripple, Stellar, and Solana. However, all these projects are lagging behind Hedera in terms of technology uniqueness. Hence HBAR is more likely to grow big in the coming years.

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The approximate estimates of the price prediction platform are as follows:

2023 - $0.098684;

2024 - $0.148027;

2025 - $0.197369;

2026 - $0.246711;

2027 - $0.296053;

2028 - $0.345396;

2029 - $0.394738;

2030 - $0.44408.

Given these numbers, the HBAR rate can grow by 1,100% in eight years.

Solana: Key Features

Solana is a third-generation first-layer blockchain. Its native token (SOL) is one of the most traded coins on crypto exchanges.

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It is a well-known competitor to Ethereum. The key problem of the king of altcoins is the high cost of running applications, which Solana solves remarkably. It uses the PoH (Proof-of-History) protocol, a method of proving that an event happened at a specific time. Proof-of-History aims to speed up the process of ordering transactions on the blockchain, which is an integral part of the system's security.

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However, Proof-of-History is not exactly a consensus algorithm like its PoS foundation. This is a technology to reduce the waiting for confirmation of transactions. Together, PoH and PoS simplify the choice system within the chain.

SOL Price Forecast

Unlike HBAR, the SOL market cap is already big enough. So Solana holders shouldn't expect huge profits here. Nevertheless, the majority of experts are bullish on this coin.

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For example, let's take the forecast from Capital.com. This platform believes that SOL can average $46.15 in 2023. Then, in 2025, the average price of the token will reach $145, in 2027 - $173.65, in 2030 - $465.96, and in 2031 - $628.15.

What Is The Best Choice For An Investor?

Imagine that you are starting your journey with these cryptos right now. So you invest $1,000 in SOL and $1,000 in HBAR. Given the mentioned forecasts and today's price, Solana would bring you $33,000, while Hedera's profit wouldn't please you that much — just $11,000.

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However, all this is just a rough estimate of prediction websites, and we advise you to do your own research! Maybe you'll decide you'll be better off dealing with lesser-known cryptos, like KLAY and MATIC: https://godex.io/exchange/klay-to-matic.