Solana’s ground token has seen a noticeable rise recently, pushing higher, with the digital currency benefiting from several bullish factors.
Digital assets reached $ 152.50 today, according to figures from Messari.
At this point, it was up more than 30% from the recent low of $ 116.34 it hit on September 21, additional data from Messari reveals.
These latest price moves came after the cryptocurrency climbed over 13,000% this year, hitting an all-time high of over $ 200 earlier this month, then falling back to around $ 116 ago. A few days.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Solana, which describes itself as the fastest blockchain in the world, generated significant visibility, which coincided with significant gains in ground tokens.
More recently, companies linked to the platform have made the headlines.
Orca, a decentralized exchange, or DEX, which was built on Solana due to the platform’s sub-second finality, recently raised $ 18 million in a Series A round.
Grape Network, the project whose initial DEX, or IDO, offering helped shut down the entire Solana network, has raised $ 1.2 million from venture capital firms. This came after the project’s IDO grossed $ 600,000.
These two events appear to fit into a larger pattern, as investors line up to invest their money in projects built on Solana.
“The Solana ecosystem is the leading blockchain in terms of capital deployed in 2021,” “and this has surely fueled Solana’s price appreciation in recent months,” said Loan Venkatapen, co-founder and managing partner of Blocklabs Capital Management.
John Iadeluca, founder and CEO of the multi-strategy fund Banz Capital, also explained how this activity has helped provide a favorable wind to soil.
“I think Solana’s token price strongly benefits from the strong increase in demand for platforms built by Solana,” he said.
“I think this is due to the recent successful funding of several startups built on the ecosystem.”
“There is a similar story that has been told in the markets previously with other powerful chains hosting successful blockchain startups, however, Solana’s nearly 30% jump in the span of a few days suggests that investors can feel more confident with Solana as a successful candidate, concluded Iadeluca.
Buy the dip
Market watchers pointed to other factors behind the recent ground token gains, noting that it had fallen significantly after reaching an all-time high and suffering a grid outage earlier this month.
As a result, it became oversold, several analysts said, and as a result, investors seized the opportunity to buy the downside.
“I think the price of Solana was oversold in September by traders due to a general fear in digital and traditional markets coupled with the recent outage of the Solana network,” Venkatapen said.
Iadeluca offered a similar view, stating that “the day after the Solana network crash, the price of SOL briefly entered oversold territory, according to its RSI, before quickly trending upward.”
“I think investors saw the combination of the network crash and the ensuing price fear as an opportunity to buy the downside, which has now taken the price back above the $ 150 level.” , he added.
Digital currency investor Marius Rupsys also intervened, saying people “probably” “used the decline to increase exposure to Solana herself because they feel they are underexposed to it.”
“Many had no exposure to Solana at all, so this was a great opportunity to buy it.” he stated.
Nick Spanos, co-founder of Zap Protocol, also provided some background, explaining why he is optimistic about Solana and her outlook.
“Solana is active because it has a chain order book, when you use Serum on solana. The chain holds buy and sell orders on the chain, ”he said.
“He has 50,000 transactions per second with this on-chain order book. No other channel has done this with such success and with such speed, ”noted Spanos.
“The serum on Solana makes it very easy to create a completely liquid exchange,” he said.
“My prediction, in terms of price, is that Solana is at the very beginning.”
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS.