- Solana’s take on Ethereum seems to be heating as SOL prices keep surging.
- DeFi and NFT could help SOL topple more altcoins in the coming days.
- Low transaction costs and fast transaction speeds are two of the greatest assets for the Solana blockchain.
Solana’s dazzling run continued today as it gained 12% in 24 hours to hit another ATH and trade at $186 at 0836 GMT on Tuesday. With that rise, SOL prices are now 54% high above their position seven days ago.
SOL’s quick ascent through the charts
In terms of market valuation, Solana has eclipsed Polkadot (DOT), Uniswap (UNI), and Chainlink (LINK). Recent news about FTX’s NFT platform for US clients has further fueled the NFT frenzy. According to an announcement by Bankman-Fried, NFT deposits and withdrawals would open in the next few weeks for anyone interested in trading Ethereum and Solana. In addition to the move by FTX, they will also enable minting NFT.
Solana’s market worth has crossed $50 billion, becoming the seventh most valuable cryptocurrency in the world. At the current growth rate, it is plausible that SOL will wind up finishing the year in the top four crypto ranking by market capitalization.
Defi fuelling the surge
On the Solana network, there has been a lot of DeFi activity taking place, and this has created a good environment for SOL’s current price surge. Over 400 dApps are already in operation, with many more poised to join them. The total value locked-in by the Solana blockchain has more than quadrupled in the first half of the year, rising to a colossal 350% from the beginning of August. The return is a massive 400 percent over that period.
The entire value locked on Solana is estimated to be $5.8 billion, according to statistics provided by DeFi Lama. Despite the frenzy around Solana’s emergence as a major contender for the number one smart contract platform, a raging dispute persists as to whether Solana is superior to Ethereum. Low transaction costs and fast transaction speeds are two of the greatest assets for the Solana blockchain. Solana claims to be the quickest blockchain network in the world and has an average transaction cost of $0.00025.
There has been a marked increase in demand for exposure to altcoins in recent weeks, with the amount of capital locked up in altcoins standing at 35 percent of the total market share.
About 40% of the recent inflows to digital assets went to altcoins, according to the CoinShares’ Digital Asset Fund Flows Weekly report from September 7th. Solana saw its investments grow two-fold year to date last week, hitting the $25 million mark for the year.
SOL is enjoying a strong bullish run that has seen it register an RSI above 70 for 19 of the past 20 days. At the time of writing, its RSI was at 88, which was well within the overbought territory. Nonetheless, the bullish demand is likely to keep going strong. If the bulls keep their control, they are likely to propel the price up to $209. If the bulls lose control, then the first support could be established at $164, and the second one could come at $146.