Here's Why I'm Buying Solana Right Now
Solana's new deal with Samsung is another piece of evidence that it's worth owning.
I am purchasing Solana (SOL -2.77%) presently, and Samsung's recent move has further convinced me to do so. By late October, Samsung will enable U.S. Galaxy device users to transfer money internationally using USD Coin via their Samsung Wallet. The impact on Solana's price is not as clear-cut as it may appear, so let's analyze why this development makes the coin a worthwhile investment.
Remittances, or money sent to family overseas, represent a promising use case for Solana. Its transfer fees are negligible, under a tenth of a cent, and transactions typically complete within a few seconds, making it highly attractive. However, Solana must share some of the benefits of this Samsung partnership. Sui is another of Samsung's network partners, so not all transfers will benefit Solana.
Additionally, users will not need to pay Samsung any transfer fees, so they won't need to hold Solana directly. Consequently, there won't be much burning of coins or removing them from the supply due to network activity. A ten million transfer event would destroy around 25 SOL. Moreover, Solana issues new coins annually at a rate of 3.9%, or approximately 24.5 million SOL per year.
Therefore, the math doesn't indicate that Solana's price will surge as a result of the Samsung deal. Nevertheless, the value comes from the fact that Solana now has a real-world use case within a phone app ecosystem where users manage their payment cards, boarding passes, and IDs, among other documents. This use case is economically valuable.
Few other cryptocurrencies have achieved this. Solana is worth buying now because the Samsung deal follows a well-known and positive pattern for holders, where the network serves as a low-cost, high-speed payments and transfers infrastructure. For example, as of Oct. 14, $16 billion in stablecoins were parked on Solana's chain. It also hosts 95% of on-chain tokenized stock trading volume.
Tokenized stocks are blockchain tokens representing real shares. Furthermore, the network is experiencing an increase in AI agents using it to transact while performing individual tasks at their users' behest, such as executing trades, rebalancing portfolios, or supporting a larger human-set goal like accessing data feeds needed for market intelligence platforms.
More users moving around more assets means more competition for the chain's finite blockspace, signaling that blockspace is valuable and raising the priority fees paid to the network's validators. In my investment experience, where there is high demand for some of the resources a blockchain offers, there is potential for upside, which is why I plan to purchase Solana within the next few weeks.
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