Solana's Value Surges 4.8% Following Governance Vote and Memecoin Boom
Summary:
Solana's value witnessed a rise of 4.8% in the previous 24 hours, hitting around $173 on May 29 and signaling a potential return of 35-40% by the end of the month - its highest since December 2023. The surge is tied to a positive governance vote for network validators and the robust performance of Solana's memecoins. With initiatives to incentivize more validators, the network is likely to see enhanced security and efficiency - factors that appeal to investors and speculators alike, driving SOL's price up by around 6.5% since the vote. Additionally, burgeoning activity and increased transaction volumes on the platform, mainly from memecoins, have amplified SOL's demand. The upward trend in SOL's price also owes to a strong buying sentiment at its support confluence, signaling potential further growth.
The value of Solana's (SOL) cryptocurrency has seen an increase of over 4.80% within the past 24 hours, reaching an intra-day apex close to $173 on May 29th. With this recent activity, there are projections that indicate a potential return of 35-40% by the end of the month, marking its highest since December 2023. The graph showing SOL/USD four-hour price delineates this trend. This upswing in Solana's value can be attributed to a few key aspects, notably, a positive governance vote for the cryptocurrency's validators and the high-performance of Solana's memecoins.
The Solana network made a decisive vote on May 27th to assign 100% of priority fees to network validators to acknowledge the crucial part they play in securing the network and optimizing its efficiency. Validators are a vital part of confirming transactions and keeping the blockchain's integrity intact. By increasing incentives, more validators may be enticed to join the network, which can potentially enhance the whole network's reliability and strength, considered by investors as signs of a solid and resilient network, thus leading to more investment and speculative trading. Following the vote, SOL has gained approximately 6.5% in its valuation.
Solana's price surge is also aligning with a significant increase in its memecoins across its network. Well-known Solana memecoin Dogwifhat (WIF) has experienced a massive boost of over 21% on a 24-hour adjusted timeframe. Other leading memecoins like Bonk (BONK), BOOK OF MEME (BOME), Popcat (POPCAT), have also seen increases around 14-15% within the same timeframe.
The memecoin upsurge has resonated with an augmentation in transactions and revenues within the Solana ecosystem, according to Dune Analytics dashboard, pump.fun. Facts indicate that a vast majority of the new projects launched on Solana's blockchain were memecoins, leading to a remarkable growth in Solana's total value locked (TVL) within its ecosystem 2024.
The influx of new tokens on Solana, especially memecoins, epitomizes an increase in platform usage and escalating activity. The more tokens there are, the more likely transactions and network usage will increase, driving SOL's demand higher, and this shift is reflected in Solana's current price upswing.
Technical arrangements around SOL's price also hint at more upward trends given the strong buying sentiment at the conjunction of its 50-day exponential moving average (50-day EMA) and the 0.236 Fibonacci retracement level, which rests along SOL's multi-month ascending trendline that has been limiting the cryptocurrency's falling attempts since December 2023. These support levels could push SOL's price towards the 0.0 Fib level or roughly $206.50 by June. However, a decisive drop below this support level and the ascending trendline could decrease SOL's price to the 0.382 Fib line at around $133 in June, representing a 22.75% drop from current price levels.
Published At
5/29/2024 11:11:05 AM
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