Solana (SOL) is the eighth largest cryptocurrency according to market capitalization. While everyone did anticipate its rise, who knew it was here to create an All-time high value for itself with 52% gains in a week. The market cap during the time of writing remains bullish slightly retracing from its ATH of $120.
SOL set the new ATH the day after it breached the $100 mark for the first time since its inception. Recording a surge of 22% within 24 hours. It created a history for the blockchain when the other altcoins were in the contraction zone with a dominant bearish sentiment. Before we get into the details of the potential that SOL possesses it is important to understand the technology behind this blockchain network. With the in-depth understanding of the technology along with the use cases of SOL, the future price predictions of SOL can be easily understood.
Solana is high functioning blockchain technology that provides decentralized finance (DeFi) solutions. The native token of this blockchain network is called SOL. Although the ideation of SOL was done way back in 2017 it was officially launched in 2020. Wondering what is DeFi? Read about the top 5 DeFi cryptocurrencies of 2021.
The Solana protocol aims to facilitate the creation of decentralized applications (DApps). The primary goal of this protocol is to improve scalability with the use of proof-of-history (PoH) consensus. It is often called Ethereum Killer. Due to its PoH consensus, it enhances the scalability as well as the utility of the protocol.
SOL set the new ATH the day after it breached the $100 mark for the first time since its inception.
The remarkably short transaction processing time also attracts a lot of crypto traders and cryptocurrency users. The hybrid protocol minimizes the time considerably for smart contract execution and transaction. This super-fast processing time has even gained the attention of numerous institutional traders.
Read how Bitcoin price surges above $46k reaching the total market cap of $2 trillion after 3 months.
While most of the altcoins, as well as the bitcoin market, showed bullish sentiment Solana (SOL) registered a gain of 50% over the week. The incredible bullish run of Solana began in August and gave a 4X rise in a month. It is no surprise to see a cryptocurrency reach a 100X rise within 8 months given the unexpected nature of the crypto market. The 4X rise that Solana recorded within a month made it one of the fastest-growing altcoins of all time.
It is also one of the first altcoins to reach a new all-time high after the market crash in May 2021.
There has been a notable demand from institutional investors for Solana. The history was clear when the Amber group expressed how money was flowing into the alternatives of Ethereum such as Solana, Avalanche, Luna, and Cosmos. Even Osprey funds filed for a Solana fund with the United States Securities and Exchange Commission. This fund is meant for HNI and institutional investors a chance to access the Solana market in a regulated manner.
The 4X rise that Solana recorded within a month made it one of the fastest-growing altcoins of all time.
The venture of the blockchain protocol into the NFT venture is another reason for the price pump in the SOL market. The ecosystem has entered the NFT market via the launch of the degenerate Ape academy. According to reports, 10,000 unique art pieces were sold within a few minutes thus, creating a huge demand for the SOL token to trade these NFTs. The fast transaction speed is another reason why such a surge in the demand for SOL was seen.
The crowd sentiment towards the eighth largest cryptocurrency is extremely bullish which is evident from data. According to CoinMarketCap, the Santiment data indicates that weighted sentiment has indeed surpassed 4 deviations above mean which is quite a rare occurrence. According to Santiment, the Solana project is seeing hype to a level that is seen by very few cryptocurrency projects.
The fast transaction speed is another reason why such a surge in the demand for SOL was seen.
The hype around Solana can be easily understood given the attention it has gained from small traders as well as institutional investors in such a small period. Even the competitors were in awe which was evident from the appreciation Solana received from the Cardano founder, Charles Hoskinson.
|Solana( year closing price)||$1.73||$99|
The incredible price rise of Solana in 2021 has helped in the exponential growth of the market cap. The market cap of Solana during the time of writing is $33,043,483,965 according to CoinMarketCap. It rose from the tenth spot and currently holds the eighth position in the cryptocurrency ranking of CoinMarketCap.
If the current bull run continues for Solana, experts believe that the market cap of Solana might reach $70 billion pushing it above Tether. If the predictions become true, Solana is expected to sit at the fifth position in the list of cryptocurrencies according to market capitalization. According to experts, Solana (SOL) has the potential to become one of the Top 5 cryptocurrencies of 2021.
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