Solana Price Up By 37.60% – Time To Buy SOL?
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Investors who were unwilling to buy SOL, Solana’s native token, in the past would have a rethink now. This is due to the growth and development the Solana ecosystem has shown in the past few weeks. The SOL token has been on an uptrend and has increased tremendously in the last 24 hours.
Despite the remarkable growth of the popular ‘Ethereum killer’ in the last couple of weeks, several investors are still unaware of the crypto protocol. This article examines the Solana ecosystem and helps you decide whether you should buy SOL or not.
Solana’s Fast-Growing Ecosystem In DeFi Sub-Sector
One of the things that make Solana unique is the speed of its network alongside the low transaction costs. Solana processes more than 6,000 transactions per second, data from Solana Beach show. However, the network’s maximum theoretical throughput is 50,000 transactions per second, according to its website.
Solana is like Ethereum; it aims to provide decentralized finance (DeFi) solutions by promoting the creation of decentralized applications (dapps) on its platform.
Solana uses a combination of the proof-of-stake (PoS) consensus algorithm and proof-of-history (PoH) timing mechanism to secure its blockchain. While PoS uses validators to verify blockchain transactions, PoH records the time passed between successful transactions on the blockchain.
The Solana network and SOL token were released in 2020 and developed by Anatoly Yakovenko and Greg Fitzgerald. Yakovenko had teamed up with Fitzgerald to work on the idea to create Solana while also launching tech firm Solana Labs in 2017.
Solana is run by the Solana Foundation, which has its headquarters in Geneva, Switzerland.
Solana has seen wide adoption since its inception. It currently has no less than 400 dApps building on its platform. Some of them include Serum, Nova Finance, Symmetry, and Solaris. These solid integrations with top dApps have seen several investors scramble to buy SOL.
SOL Hits New All-time High
The SOL token has climbed from the 42nd position in the market to the 11th on the list of top cryptocurrencies by market capitalization. Per data from CoinMarketCap, SOL has a market cap of $17.5 billion making it one of the most sought-after assets.
The SOL token is presently trading at $61.26 and is up by 37.60% on the daily chart. The asset has been on a bullish run since last week. This steady increase saw it hit a new all-time high (ATH) of $64.34 a few hours ago.
Solana has seen a very impressive increase since the start of 2021. From less than $1.851 in January to its present value of $61, the digital token has posted a staggering 3100% gain in 2021.
A week ago, SOL was down and trading at a price of only $38.95, but the present surge shows a positive recovery. The token climbed to $41.41 on Thursday, August 12th, and further to $43.56 on Friday. On Saturday, SOL had already reached $44.04, and by the end of Sunday, it was trading at $52.95.
SOL’s Technical And Fundamental Analysis
The SOL token signals a bullish run on the trading chart as seen in the 20-day moving average (MA) support price of $61.35. SOL’s 200-day MA also shows an increased price of $61.90, signaling an uptrend.
The asset’s relative strength index (RSI) stands at 50.63. This means that it is trading below the overbought level, and this may be a great time to buy SOL.
The SOL token’s new bull rally comes at a time when Solana-based projects are blooming. The Solana blockchain has seen rising adoption and cross-chain communication lately. Mango Markets, a decentralized cross-margin trading platform on Solana recently raised $70 million in a token sale.
Additionally, Wormhole, an interoperability bridge that allows networks like Solana and Ethereum to communicate, announced the launch of its mainnet this month.
The mainnet would now support inter-blockchain message transfers between Solana, Ethereum, Terra, and Binance Smart Chain (BSC). The protocol plans to add other prominent chains in the near future.
This cross-chain messaging platform could also allow the transfer of cross-chain liquidity with Solana’s ecosystem, including Serum.
Pyth Network, a decentralized platform that aggregates data on the Solana blockchain, has also welcomed new partners this month. XR Trading, a proprietary trading firm, joined Pyth recently to contribute real-time crypto pricing data to the Pyth network.
