Solana's Weekly Surge up 12% Amid Increased Network Activity and Investment Bank Support
Summary:
Solana's (SOL) native cryptocurrency has noted a 12% weekly rise, despite a challenging landscape. Factors contributing include a positive report from a leading investment bank, increased usage of the Solana network, and updates to its interoperability features. Although SOL's market performance narrows the gap with BNB Chain, the network continues to grapple with transactional challenges amidst increasing competition. The Solana network has seen increased activity and a record total value lock since October 2022, indicating possible growth in investor interest.
On May 6, Solana's (SOL) native crypto coin witnessed a 7.2% surge, touching the $156 mark, though a minor drop later, it settled at a current price of $152 reflecting a daily growth of 3.8% and a week's rise of 12%. This surge in SOL's worth can be credited to a positive report from a renowned investment banking company, heightened usage of the Solana network, and an update to interoperability features on a well-known decentralized exchange.
SOL's market performance has been steadily closing in on BNB Chain (BNB), the third most significant cryptocurrency by market capitalization. Although BNB held a substantial gap of $28.5 billion as of April 30, it dwindled to $18.4 billion thereafter.
The rivalry among blockchains catering to decentralized applications (DApps) has spiked lately due to Toncoin's (TON) integration with Telegram and the rise of Ethereum layer-2 solutions such as Base and Blast. However, Solana which touts its capabilities and decentralization still struggles with transaction failure challenges.
Solana faces stiff competition from alternate networks offering inexpensive transactions and deposit incentives, in an increasingly bearish crypto market. Factors including U.S. spot Bitcoin ETF outflows, regulatory actions against crypto mixing services, and a stern legislative stance contribute to the market bearishness.
Senators Elizabeth Warren and Angus King expressed concern over potential national security threats from cryptocurrency miners in Iran, while Representative Maxine Waters revealed potential legislation regarding stablecoins and bank clawbacks, highlighting the grim crypto climate.
Despite these challenges, SOL's 12% weekly rise signals a positive sentiment. Franklin Templeton's May 2 report titled 'Solana: Accelerated Adoption', applauding Solana's approach to address congestion issues, and Firedancer's role, a validator client crafted by Jump Crypto, in boosting network scalability is noteworthy.
On May 6, JupiterExchange, a notable decentralized exchange on the Solana network, announced implementing CloneProtocol into their routing system, enabling Jupiter users to trade non-native Solana assets seamlessly without any bridges.
Solana network's increased activity and deposits have struck a high note, with the network's total value locked (TVL) achieving heights not seen since October 2022. The TVL peak was triggered by a $500 million investment into Sanctum’s liquid staking solution. Ethereum and BNB Chain showed a 9.5% increase and a 24% decrease respectively.
With a boost in active addresses interacting with DApps and a surge in transaction volume, primarily driven by the Jito and Marinade Finance, Solana reported a hike of 29% on a weekly basis.
Predicting SOL's sustenance above the $150 mark is tough, but a growth in investor interest, backed by bullish reports from leading investment banks, increased Solana network activity, and constant improvements focusing on interoperability and reliability, can be seen.
Published At
5/6/2024 11:53:10 PM
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