Solana rally mimicking Ethereum? Why a $500 SOL price target could be ‘conservative’

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A high-flying Solana (SOL) refused to land even within the face of a brutal sell-off in the cryptocurrency market on Tuesday. Two days later, the worth of SOL rebounded to a different new all-time excessive.

The SOL/USD alternate price averted a giant pullback over the earlier 48 hours and reached $217 for the primary time in historical past.

The pair’s means to maintain bearish stress underscored traders’ rising curiosity in Solana’s blockchain as an rising rival to Ethereum, a public ledger at present main the decentralized finance (DeFi) and nonfungible token (NFT) sector increase.

SOL/USD day by day value chart. Supply: TradingView 

“The SOL outperformance available in the market lately is kind of the continuation of its progress run in current instances,” mentioned Petr Kozyakov, co-founder and CEO at fee service agency Mercuryo. 

“With greater than two totally different NFT venture launches and minting happening within the ecosystem per day, there may be an never-ending demand for SOL from retail patrons. Because of this, it has stored the worth up greater than 50% this week regardless of a market-wide crash.”

Intimately, Solana hosted the launch of the NFT Degenerate Ape Academy on Aug. 15, which featured a set of 10,000 cartoon apes. They have been offered out in simply eight minutes and concerned 96,000 SOL or about $5.9 million.

Solana continued its foray into the NFT area by enabling an FTX-backed digital collectibles marketplace earlier this week. FTX, a crypto derivatives platform, revealed that its new NFT enterprise would allow NFT creators and house owners to commerce their digital arts cross-chain utilizing Solana and Ethereum.

Solana beats prime rivals

The cryptocurrency market wiped greater than $200 billion off its valuation following a sudden sell-off Tuesday. The main digital asset by market capitalization, Bitcoin (BTC), noticed its costs plunge from over $52,000 to nearly $42,000 inside minutes, which analysts largely blame on cascading long liquidations.

Different cryptocurrencies, or altcoins, which kind of tail the Bitcoin pattern, dropped in tandem, with the second-largest, Ether (ETH), plunging by up to 23.41%, and its runner-up — one other good contract rival — Cardano (ADA), dropping by 30.89%.

Solana’s prime rivals Ethereum and Cardano value efficiency. Supply: TradingView

Nevertheless, Solana was an exception within the sea of crimson. Whereas the SOL/USD wobbled violently between features and losses, it will definitely closed the day 5.45% increased and adopted it with prolonged upside strikes within the periods forward.

The pair has surged nearly 890% after bottoming out on July 20 at $21.96. On the identical time, the overall worth locked inside Solana-based DeFi tasks has crossed $7.81 billion, per data supplied by SolanaProject.com.

Greg Waisman, co-founder and chief working officer of Mercuryo, instructed Cointelegraph that he anticipates SOL to have reached $500 by the tip of 2021. He famous:

“Solana’s progress runs look like mimicking that of Ethereum (ETH) and Binance Coin (BNB), and the $500 projection might become a conservative one for the coin.”

The views and opinions expressed listed here are solely these of the creator and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, you need to conduct your individual analysis when making a choice.