Solana has been climbing up the crypto market ranks in the recent past. SOL, the native token of the decentralized blockchain platform, has staged a stunning rally over the past three weeks amid mounting interest in DeFi and NFTs.
Solana-based Projects are on a Tear
The SOL token gained over 276% in the past month alone, making it one of the biggest movers in the digital assets space. SOL is currently trading at an all-time high of $180, per data from crypto ranking website coinmarketcap.
The pricing momentum has propelled Solana’s market cap to more than $52 billion, eclipsing meme-based token Dogecoin to become the seventh-most valuable crypto.
Meanwhile, Serum (SRM), a decentralized exchange software built on the Solana blockchain, is pumping. The SRM token is up nearly 7% at press time to change hands for $9.33.
FTT, the native token of FTX crypto exchange, is also on the rise. The price is likely benefitting from bullish news of an upcoming FTX marketplace where users can trade NFTs cross-chain between Solana and Ethereum. The FTT/USD exchange rate has logged double-digit gains in the past 24 hours to hit $75.
What is Behind the SOL Price Uptick?
Solana’s recent surge to meteoric new highs has helped establish the project as a legitimate long-term investment and a leader amongst altcoins.
SOL, which made its debut on top-tier exchanges only 18 months ago, has generated a lot of buzz within the crypto community. At the core of this mounting interest is the project’s decision to prioritize smart contracts support. That move has allowed Solana to take advantage of the booming NFT space.
The digital collectibles market hit a staggering sales record of $900M last month, boosting the prospects of blockchain projects that facilitate smart contracts. According to JPMorgan Managing Director Nikolaos Panigirtzoglou, the increasing retail interest in NFTs and DeFi has sparked a resurgence in altcoin markets.
“The August rally in non-fungible tokens and the pickup in decentralized finance activity have helped not only ethereum but also alternative cryptocurrencies that facilitate or plan to facilitate smart contracts, such as Solana, Binance Coin, and Cardano,” Panigirtzoglou told Forbes.
Solana has benefitted from its entry into the smart contracts space ahead of Cardano and is now considered a serious contender for the moniker “Ethereum killer.”
The decentralized blockchain has cashed in on the ongoing NFT craze with its newly launched Degenerate Ape Academy. Digital art creators sold over 10,000 pictures of cartoon apes within minutes of launch, driving demand for SOL, which is used for minting NFTs on Solana.
Solana’s Strong Fundamentals
Solana has raised over $7M in investments over the past two weeks as investors bet big on the project’s potential to disrupt the DeFi and NFT sectors.
The SOL price extended its rally last week on the back of “Ignition.” The mysterious event introduced a global virtual hackathon that will offer developers up to $5M to build new projects on Solana.