By
Temitope Olatunji
April 19th, 2024
Solana price pump has partially been attributed to the venture into NFT made by the ecosystem.
Solana price has experienced a major boost in the past few weeks, talking to a new ATH around $100. Consequently, Solana has secured position 8 by market capitalization according to market analytics provided by CoinGecko. Notably, the asset traded around $97.70, 2.9% up at the time of reporting.
Solana has a market capitalization of approximately $28.5 billion and its 24-hour trading volume hovered around $2.1 billion.
Out of 488,630,611 units of SOL, there are 290,944,595 units in circulating supply. In addition to the asset being used as a speculative trading tool, the team behind Solana has been working tirelessly in the past few years to build next-generation Defi infrastructure.
Moreover, the leading Defi ecosystem, Ethereum, has experienced major challenges in throughput and high transaction costs. As a result, alternative decentralized Defi hubs have sprung up with Solana emerging as a top-notch for most developers.
Notably, the asset has gained approximately 2359%, 202%, 82%, and 33% in the past year, 30 days, fourteen days, and seven days respectively according to CoinGecko.
The exponential growth rate experienced in the Solana ecosystem among other digital assets has significantly increased the chances of another crypto bull market. Market analysts are closely watching the August monthly close and the close for the subsequent weeks.
Solana (SOL) amid Hitting Its New ATH
There has been a notable demand for Solana from institutional investors, as hinted by crypto financial services firm Amber Group. “Generally speaking, money has been flowing into Ethereum alternatives like Solana, Cosmos, Luna, and Avalanche,” Amber Group said.
To support the argument, Osprey Funds recently filed for a Solana Fund with the United States Securities and Exchange Commission. The Osprey Solana Trust is meant to give high net worth and institutional investors a chance to access a regulated Solana market.
Solana price pump has partially been attributed to the NFT venture by the ecosystem. Notably, the ecosystem ventured into the NFT market through the launch of Degenerate Ape Academy. Reportedly, over 10,000 unique artworks were sold within the first few minutes. Consequently, a huge demand for SOL tokens to trade the NFTs resulted in a notable price pump.
Once people bought SOL and experienced the speed and low transaction costs for themselves, they got more bullish,” Packy McCormick, the author of the Not Boring newsletter, noted in a recent essay titled Solana Summer.
The Solana ecosystem has tremendously grown as more Defi platforms including HydraSwap, Orca, Raydium, Popsicle Finance, SolFarm, Solyard compete with others from different blockchains.