Solana crushed a new milestone on Tuesday as it continues its amazing performance in the market that has seen it become one of the most valuable blockchains in the industry. Solana’s native token, ADA, has reached new all-time high prices, just a little over a full week after setting a previous all-time high record. The token looks unstoppable as it continues its amazing rally.
SOL rallied by 16.7% to hit $231 after its price action showed strong bullish movements. The token, currently valued at number 6 on Coinmarketcap, has a market cap. of $70.3 billion and a market volume of $4.9 billion. SOL has become one of the most used blockchains for DeFi projects in recent months.
Why is SOL Price Increasing
Analysts predicted a strong bullish move for Solana’s native coin after analyzing the network’s improvement and features in the last month. Solana has steadily attracted more DeFi creators to deploy projects on the Solana network where they have benefits such as lightning-fast transaction speed, low network fees, and multi-layered security protocols. Throw in the incentivized proof-of-stake protocol that many think is the major drive behind SOL’s recent price action.
Solana’s decentralized application policies favor the development of new projects on the network and since new blocks can be added instantly, creators are turning to Solana as an alternative to Ethereum, which is less suitable for their needs. The decentralized applications on Solana are now powering its insane bullish drive to newer heights.
As of press time, Solana has approximately $13.7 billion locked in its liquidity pool. This pool supplies all the Solana tokens needed for heavy usage within the network. DeFi and NFTs creators on Solana must convert their tokens into SOL on the Solana blockchain before they can create anything. The impact of this has been positive so far; the intrinsic value of Solana has increased in giant leaps within a few months to date.
Solana has now positioned itself as a top blockchain for deploying DeFi apps and since the decentralized application boom is coming around again, further price movements are expected.
SOL Price Predictions
Since more users are leaving Ethereum for Solana due to high network transaction fees and slower confirmations, SOL price is expected to increase as its intrinsic value heightens. SOL has a variety of use cases on the network; for fees, staking, rewards, and governance. As more people come to use it and the network enters more partnerships to increase its functionality, one can only help but wonder when SOL would break the next ATH.
Although scalability remains an issue on Ethereum, Solana is expected to roll out features that integrate on-chain use to provide users with safer and faster access to their blockchains. On the weekly chart, SOL continues its strong bullish candle and would be looking to test the $240 mark. SOL currently trades at $231.94 with a 24h price change of $26.49 (12.89%).