Solana Price Up By 4.30% – Time To Buy SOL Coin?

Solana blockchain is one of the hottest protocols in the crypto market at the moment. Given its low-cost and highly scalable protocol, several blockchain-based applications called dApps are transitioning to Solana and boosting the network’s blockchain reputation.

Solana: Redefining The DeFi Race

Some months back, the Solana blockchain was considered decentralized finance (DeFi) hopeful protocol. The Ethereum network held the largest share of the booming sub-sector.

However, following criticisms of the power-heavy proof-of-work (PoW) consensus algorithms, the Solana blockchain has been on an uptrend ever since.

The protocol sports a twin algorithm architecture of proof-of-stake (PoS) and proof-of-history (PoH) timing mechanism. These consensus algorithms make Solana one of the fastest blockchains in the crypto space, with a high throughput of 50,000 transactions per second (TPS). It is also cost-effective as developers get to build on the Solana ecosystem for a fraction of the cost Ethereum bills users.

Meanwhile, Solana major selling point has been its energy-saving feature.

PoW fell down the crypto pedestal after Tesla boss Elon Musk criticized the ancient consensus algorithm for being environmentally unfriendly and subsequently delisting Bitcoin as a payment option for his EV cars. This was closely followed by reports of China’s crackdown on crypto mining activities in its Inner Mongolia regions.

These twin incidents forced crypto investors to focus on PoS protocols like Solana, and several dApps have since moved to the Solana ecosystem. Its governance token SOL powers the Solana ecosystem and is also used for staking and bonding.

SOL Maintaining An Uptrend

The crypto market has not been kind on any crypto-asset, but the SOL token has made something out of the volatile market. While large-cap assets Bitcoin and Ethereum were dragging their feet in early September, SOL was on a tear, surging more than 1,000% between August and mid-September.

This saw the SOL price surge to an all-time high (ATH) of $214.46. However, the popular ‘Ethereum killer’ could not retain this price action and subsequently dipped as the bears regained market control.

Subsequent rallies have not yielded the same results. However, SOL is still a promising digital currency. The digital token is up 4.30% and trades at $136.67 on the daily chart. Although weekly gains are still negative, a low-priced SOL token could signal an opportunity to buy SOL and hold for the next crypto wave.

SOL Technical and Fundamental Analysis

SOL is trading below the 20-day moving average (MA) price of $150.27, which generally signals a bearish trend in the short term. However, a concerted market rally will see it surpass the price peg in the coming days. Also, SOL’s relative strength index (RSI) figure of 49.80 shows that investors are still willing to buy SOL given its remarkable form of late.

To increase its blockchain adoption, Solana is launching a DeFi hackathon worth over $5 million in prizes and seed funding. Also, the blockchain recently announced the launch of a blockchain trading app called Secretum. The Solana app will enable users to anonymously communicate on a wallet to wallet basis through phone or video. Users would also trade crypto on a P2P basis with escrow smart contract functionality in place.

Buy SOL at eToro from just $50 Now!