Apparently, Solana isn’t done making headlines. On August 30, we reported on the amazing price hike Solana had and subsequent achievement of being 8th in the ranks.
However, it wasn’t your average pump and dump since SOL has kept on growing since then. With an impressive 12% climb to $145, Solana’s market cap reached $42 billion, overtaking Dogecoin with an inferior $38 billion. Dara provided by Messari.
How does Solana keep on winning?
To begin with, the Solana network has successfully proven to be an excellent DeFi infrastructure. It has been adopted by institutional investors as an alternative for the Ethereum network. So naturally, there is an enormous amount of money flowing in the network. However, the NFT craze is also responsible for bringing massive inflows into the network.
Since the Launch of the Degenerate Ape Academy on August 15, the extremely bullish run for SOL has begun. Furthermore, another big reason for the jump could also be the launch of Solsea, the dedicated Solana NFT marketplace.
What do we learn from Solana?
As Dogecoin is having a decline, we can see legitimate tokens with strong fundamental utility are coming up in the ranks. Tokens such as Luna, Avalanche, Cosmos, ADA, NEO and Solana are getting what they deserve according to their functionality and utility. Pragmatically speaking, the crypto market is in dire need of improved reputation. The pump and dump events (ELON), fraudulent ICO’s and shitcoins have created a negative social image for crypto. Fortunately, as these fundamentally strong projects rise, crypto can recover its constructive image.
By surpassing DOGE, Solana proved that at the end of the day, it is function that determines the value, not twitter accounts of billionaires.
Should I Buy Solana?
If you are to hodl, SOL seems to be a great investment. Even if the NFT craze miraculously dies out, the network has great potential and billions of invested assets in circulation. For short-term however, considering the 14-day RSI at 70, indicating a possible slowdown in rally, SOL seems to be too volatile for us to suggest buying. Generally speaking, high volatility accompanies by a slowdown in trend could provide a good opportunity to sell. So do your research before any investment.
Good News!
We are proud to announce HiExchange will soon add Solana to the list of supported cryptocurrencies for exchange. Make sure you check our blog on a daily basis as well as on social media to stay up to date with our latest announcements, Opinion articles, news and technical analysis.
