Solana has been making headlines all over the place for a while now, and the project has also been able to penetrate the mainstream media.
Bloomberg recently addressed the booming price of the coin and offered various reasons for the growth of the SOL price.
They also pointed out the fact that SOL is now occupying the 7th spot on CMC.
FX Street notes that Ethereum rival Solana’s recent price rally managed to draw attention from important traders and analysts.
The altcoin posted 51% gains in the past week, and analysts is expecting SOL’s current price rally to last for some more.
Spike in NFT activity on Solanart
It’s been revealed that the spike in NFT activity on Solanart, which is the marketplace built on the SOL blockchain, was instrumental in driving the altcoin’s price higher.
The same online publication mentioned above notes that the fastest blockchain network in the world is Solana.
The network is capable of processing 50,000 TPS at a fraction of the cost of Ethereum’s transaction fees.
FTX team works on Serum
It’s also been revealed that the FTX team, led by founder and CEO Sam-Bankman Fried, is working on Serum.
All NFTs will be cross-chain ETH/SOL!
Deposits/withdrawals opening up in the next couple weeks.
You'll also be able to deposit outside NFTs then!— SBF (@SBF_FTX) September 6, 2021
This is a project that creates a fully permissionless DEX and DeFi ecosystem with trustless cross-chain trading.
The serum is powered by the Solana blockchain that offers higher speed and throughput compared to Ethereum,” the same online publication noted.
Sam-Bankman Fried has announced FTX’s latest offering, an NFT marketplace that enables cross-chain selling between Ethereum and Solana.
It’s also worth noting the fact that the FTX US website is currently featuring a testing interface.
Stay tuned for more news, and make sure to check out the five reasons for SOL’s success – take a look at our previous article.
NASDAQ revealed these reasons for which SOL keeps growing, and the project is seeing such massive success. Make sure to check out the top 5 Solana ecosystem coins.
Solana price eyes $300 as Grayscale launches SOL-backed trust
The digital asset class is growing, and we’re expanding our offerings along with it! Gain exposure to $SOL, the native token of the @Solana network, through new Grayscale #Solana Trust. Learn more: https://t.co/QiT6u0xI7h pic.twitter.com/KAxRZAriRl— Grayscale (@Grayscale) November 30, 2021
A $300 SOL ahead?
SOL rallied to nearly $217.50 after rising by over 6.50% intraday. The Solana token’s gains primarily came as a part of a recovery move that started Nov. 28, wherein it rebounded over 20% upon testing a dependable multi-month ascending trendline as support (near $190), as shown in the chart below.
The latest bout of buying near the trendline support also helped push SOL over the 23.6 Fib line (~$204) of its Fibonacci retracement graph, drawn from the $23.22-swing low to the $260.69-swing high. As a result, the $260-price level appears like the last line of defense between SOL and a new record high.
“SOL, although, looks like exhaustion, still $300-something is possible (this season),” noted @fomocapdao, an independent market analyst, adding:
“It depends on the whole [ecosystem though], meaning TVL, NFTs, Tabasco, announcements of announcements.”
“Continued appetite” for Solana
Grayscale’s decision to add Solana into its service portfolio promised to make SOL visible across more high-net-worth and institutional investors.
That is primarily because of Solana’s incredible growth as a blockchain project in 2021. The layer-one protocol emerged as a rival to fellow smart contracts platform Ethereum after providing users with one of the lowest-costing and fastest public ledgers.
Solana’s ecosystem attracted over 500 projects spread across decentralized finance (DeFi), nonfungible tokens (NFT), Web3, and other sectors, with 1.2 million active users on the network. Among them is Serum, a decentralized derivatives exchange backed by billionaire Sam Bankman-Fried’s FTX and Alamada Research.
As a result, the price of SOL, which works as a fee and staking token inside the Solana ecosystem, surged by more than 10,700% year-over-year, with its circulating market capitalization peaking near $77.93 billion in November.
Now valued at over $70 billion, Solana is still the fourth-largest blockchain by market capitalization, with Grayscale CEO Michael Sonnenshein noting that there is already a “continued appetite” among investors to gain exposure in the blockchain project.
The statements came after Coinshares, a London-based asset management firm, reported net capital inflows worth over $250 million into the SOL-based exchange-traded products (ETP). This month alone, the Solana ETPs attracted around $42.2 million, Coinshares underscored in its Nov. 29 report.
Despite the calls for SOL to hit $300 next, the token still faces downside risks due to a few general issues, including excessive valuations on longer-timeframe charts and possibilities of network outages.
Grayscale Debuts New Trust for Solana
Grayscale Solana Trust has become the asset manager’s 16th investment product
Leading cryptocurrency money manager Grayscale Investments announced Tuesday that it had introduced a cryptocurrency trust for Solana, the fifth-largest cryptocurrency by market capitalization.
The newly launched investment vehicle makes it possible for accredited investors to gain exposure to the top “Ethereum killer” without actually holding the underlying asset, thus mitigating risks linked to custody.
CEO Michael Sonnenshein said that the company’s suite of offerings continues to expand together with the broader crypt ecosystem:
We have had a front-row seat to the mainstream acceptance and adoption of crypto, and increasingly find that investors are diversifying their exposure beyond digital assets like Bitcoin and Ethereum.
With the most recent addition, the Grayscale family is now comprised of 16 trusts. With $35.7 billion under management, the Bitcoin trust remains the company’s crown jewel.
Solana, a high-throughput blockchain, has managed to chip away at Ethereum’s share of the crypto market, taking advantage of the competitor’s exorbitant gas fees that make the second-largest blockchain too expensive for the average Joe. Its native SOL token is up over 1,000% since the start of April, becoming one of the top-performing cryptocurrencies of the year.
As reported by U.Today, FTX cofounder Sam Bankman-Fried recently said that Solana could possibly overtake Ethereum.
For now, such a scenario appears to be far-fetched since the former accounts only for 11% of the latter’s massive $553 billion market cap.
Solana price to trigger a 15% upswing as SOL retests crucial support level
- Solana price has rallied roughly 17% over the past day, recovering losses from the COVID-induced crash.
- A minor pullback is likely before SOL heads on a 15% upswing to $226.
- A daily candlestick close below $185 will invalidate the bullish thesis.
Solana price appears to be making a comeback after it slipped into a steep correction since its all-time high on November 7. This downswing has stopped after retesting a crucial support level and is on a journey to head higher.
Solana price looks to make higher highs
Solana price dropped roughly 30% from November 7 to November 28 as the crypto markets experienced a shift in momentum. The correction, while brutal, allowed market makers to collect liquidity resting below the $185 support level. As a result, SOL bounced back quickly and rallied 10%.
Currently, Solana price is contemplating a downswing to the 50% retracement level at $197. In some cases, the downswing could extend to the 62% or 70.5% Fibonacci retracement levels at $194 or $193. A retest of either of these levels will trigger SOL to move 10% and retest $216. If the buying pressure persists, the “Ethereum-killer” could extend this run-up to 15% at $226.
Depending on the bullish momentum, market makers could also push Solana price to collect the liquidity resting above the $245 level. Due to double top formation, SOL could quickly revisit this area if the market structure flips bullish.
SOL/USD 4-hour chart
While things are looking up for Solana price, a breakdown of the 79% Fibonacci retracement level at $191 will lead SOL toward the range low at $187 that nearly coincides with the critical support level at $185. A daily candlestick close below $185 will create a lower low and invalidate the bullish thesis. In this situation, Solana price could revisit the $178 level.