Solana Price Up By 22.58% – Time To Buy SOL Coin?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
The Solana blockchain is seeing growing adoption by the day as more decentralized applications (dapps) integrate with the popular ‘Ethereum killer.’ This has seen the blockchain protocol move into the top ten most valuable cryptocurrency charts, recently displacing meme-based token Dogecoin.
The network’s phenomenal rally has seen it gain blockchain prominence with several investors out to buy SOL. However, before deciding to buy SOL, it is advisable that you understand what the crypto platform aims to achieve to determine if it is sustainable. This guide aims to do this.
Solana: Rivaling Ethereum For DeFi Pie
Like a slew of dapps facilitating platforms, the Solana network wants to enable a more connected financial ecosystem where anyone, anywhere, can send and receive value effortlessly.
The protocol was launched to promote the adoption of decentralized finance (DeFi), where lending and borrowing of assets are carried out by sophisticated software called smart contracts.
Solana has been called an ‘Ethereum killer’, and rightly so. The network competes in a market controlled by Ethereum- a network with a first-mover advantage. Even though Solana has been called an underdog, the blockchain platform, alongside fellow Ethereum killer Cardano, has seen remarkable growth in the last few weeks, positively impacting its market valuation.
SOL has shown a bullish potential for much of August, and with its faster block finality and low network fees, more dapps are moving to the Solana blockchain.
More integrations point to more value, and the Solana blockchain has seen its total value locked (TVL) shoot up in the past weeks. According to DeFi Llama, Solana currently has $3.96 billion TVL, up more than 200% from August 1 TVL of $1.22 billion.
This continued rally has moved SOL from being part of the top twenty largest crypto assets to the number seven spot, displacing meme coin DOGE. The DeFi-driven token currently has over $41 billion worth of market cap, and this might be a great time to buy SOL.
SOL Price Riding On The Bullish Wave
Aside from DeFi, Solana has become a hotbed for non-fungible tokens (NFTs). The digital collectibles that store ownership of tokenized assets on the blockchain have boomed in the past eight months, with daily record sales. In a report by Dune Analytics, popular secondary NFT marketplace OpenSea recorded over $3 billion worth of transactions.
Solana has played a part in the NFT success with its hybrid consensus algorithm, which combines both proof-of-stake (PoS) and proof-of-history (PoH) timing mechanisms to enable faster transaction validation.
NFTs have boomed, with record sales happening in August. This has pushed the value of SOL ever higher, with the digital asset hitting an all-time high (ATH) of $146.37 earlier in the day, rising 35% month-to-date.
This huge spike has seen SOL grow more than 7,500% year-to-date, surpassing the growth trajectory of the Ethereum network for the said period.
At press time, SOL has relinquished some of these gains and trades at $141.57, up 22.58% on the daily chart. With the blockchain protocol experiencing sustained bullish momentum, this might be the best time to buy SOL before making a new ATH.
SOL Technical And Fundamental Analysis
SOL’s technical analysis is promising as the digital token is showing strong bullish potential. The crypto asset is trading way above the 20-day moving average (MA) support price of $86.38, with the green candlestick showing sustained growth potential.
The relative strength index (RSI) is off the charts, and the oscillator shows that SOL is trading in the overbought region of 88.72. This indicates that several investors are in the market to buy SOL.
This parabolic rise can be attributed, in part, to the recent announcement by blockchain-powered music platform Audius. In a tweet, the music streaming service said that it would be launching an NFT integration on the Solana blockchain following its achievement of $60 million in collectible transactions in the last week.
The initial integration will be with Solana’s wallet, Phantom, which will unlock the Audius Silver Tier profiles and enable its six million users to showcase their Solana SPL NFT collectibles with other popular NFTs like Crypto Punks, Bored Ape Yacht Club, Cool Cats, and several others.
Buy SOL at eToro from just $50 Now!
