Can Solana (SOL) Trade Over $200
Solana (SOL) is getting multiple boosts on a new upward expansion. SOL shot up on Monday, gaining new ground within minutes, to reach $192.55. SOL market prices are already up 30% over the past 24 hours, with double-digit gains already a few days in a row. SOL follows the overall market optimism which took BTC above $52,700 and was reflected in several other coin and token classes, such as file storage coins.
The rapid rise of SOL may be followed by volatility, as soon after its peak SOL fell toward $182. The latest price hike happened on record trading volumes above $9B in the past 24 hours.
SOL is among the top gainers in 2021, after starting at prices under $2 only a year ago. The growth in DeFi, as well as the addition of scalable projects is boosting the Solana platform and putting its asset among top gainers.
SOL Gets Coinbase Premium
The heightened interest in Solana was immediately reflected in a short-term premium on Coinbase. The US-based brokerage exposes SOL to a legal, transparent buying opportunity for US-based persons.
SOL has the advantage of a Coinbase listing and a further inflow of liquidity in comparison to assets only relying on the Binance International Exchange.
Solana Hackathon Boosts Prices
In the short term, SOL received a boost from its annual hackathon. Starting on August 31, the hackathon added attention to SOL and extended its gains to 100X in the current year.
The growth of Solana projects also happened rapidly in the past month, as the scalable network continued to attract builders.
Solana is currently ahead of ecosystems such as NEO, Tezos and Cardano in attracting working applications, along with working oracles and smart contracts.
How High Can SOL Go
The rapid expansion of SOL market prices is catching up even with the more extreme price predictions. SOL is within a small distance of the $200 mark, with expectations of moving toward $300.
Beyond trading, the Solana ecosystem is showing significant growth in new projects, as well as total value locked in DeFi operations.
The Solana ecosystem now holds more than $5B in total value locked, on track to line up with Binance Smart Chain as one of the hubs for decentralized activity. One of the chief advantages of SOL is that, unlike Cardano (ADA), it is not an idle ecosystem, but carries multiple highly active products.
In terms of competition, Solana is considered underpriced and a potential competitor to ADA.
SOL has displaced multiple assets to settle among the top 10 of digital coins my market capitalization. The success of Solana in supporting multiple projects may prove competitive to other assets lagging in terms of real-world usage.
DeFi, NFTs Boost Solana Brand
The Solana platform already hosts 86 DeFi projects, with Sayber and Raydius already operating decentralized trading platforms. The two projects are valued at above $1.5B and boost the valuation of the entire Solana ecosystem.
Solana now carries 26 NFT marketplaces, with a growing number of offerings and airdrops. SolPunks has also turned into one of the most in-demand collections, possibly repeating the success of Ethereum’s CryptoPunks collection.
SolPunks, however, comes with a warning as fake collections are cropping up on marketplaces. However, NFT marketplaces are still small in comparison to insurance, DeFi and decentralized exchanges built on Solana.
KIN Token Gets Boost
The newly created KIN token on the Solana network is among the most active digital assets. KIN, the native token of the Kik app, was an embattled digital asset on the Ethereum network.
After moving to Solana, KIN remains the asset with one of the highest transaction counts reported. The Kik chat app is already widely used, and KIN may become one of the growth assets on the Solana ecosystem.
For now, Solana-based tokens are low-priced, and hinge on trading on decentralized exchanges or small market operators. KIN is available on the FTX Exchange, and is yet to achieve wider adoption due to previous troubles with its legal status in the USA and Canada.
Solana distributed apps are not specifically tracked through dApp Radar, hence the still unknown size and user base of all Solana projects.
SOL Staking Decreases Supply
SOL has no cap on the total number of tokens produced. Currently there are more than 291M SOL in circulation, with more than 500M ever minted.
SOL staking is available through any suitable wallet, including Sollet. Delegating SOL is the most accessible staking mechanism for retail owners, bringing more than 6.35% annualized rate. Running a validator has a higher average reward of 7%.
SOL is also relatively democratic in its token distribution, with top “whale” accounts hoding no more than 10% of the supply.
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