The SOL price surged in the aftermath of “Ignition,” a global hackathon to create new Solana blockchain platforms. Solana (SOL) hit a new high on Friday, as investors continued to bet on the company's success in the decentralized finance (DeFi) and nonfungible tokens (NFT) space.
Following a 35 percent month-to-date rise, the SOL/USD exchange rate reached $146.28 for the first time in history. The massive upward movement pushed the pair's annual returns beyond 7,500 percent, boosting Solana's market value to $41 billion, making it the seventh-most valuable cryptocurrency project.
Solana's ascent to new highs drew attention to overvaluation concerns, with a classic momentum indicator, the relative strength index (RSI), indicating that the cryptocurrency was overbought. The RSI was over 70, indicating that SOL/USD could see a sell-off in the next sessions and that taking a long position on the pair could be dangerous.
Analysts, however, cautioned that it is too early to declare the Solana to be the best. Speculators should just let Solana ride and see where it goes given its current strength, according to an independent market analyst who goes by the moniker The Crypto Dog.
SOL/USD values are expected to reach $150 in the coming sessions, according to Yuriy Mazur, head of data analytics at cryptocurrency exchange CEX.IO. However, he, too, emphasized that the pair had entered a "price discovery" period, and that the pair's future bias will be determined by how well Solana does in the DeFi and NFT spaces.
“The price of Solana (SOL) is on the rise since the blockchain is currently demonstrating its promise as a viable alternative hub for all things Decentralized Finance and Nonfungible Tokens,”
“The increased demand for the tokens for use in minting thousands of NFTs being released on the Solana blockchain has led Solana's growth to $146.28.”
Users pay transaction costs to process and validate transactions on the blockchain on most NFT and DeFi platforms. The so-called gas fees vary depending on the network. Most NFT and DeFi projects are hosted on Ethereum via smart contracts that use its native coin, Ether (ETH), albeit this is also why the network has severe cost issues.
Investors now see Solana as a long-term competitor to Ethereum, according to Mazur, especially when it comes to lower gas expenses and more scalability. Audius, a blockchain-enabled music streaming business, used Solana to support its NFT initiative, according to him.
The expert stated, "Solana is still establishing itself to be a resilient and better option to Ethereum."
“In terms of becoming a key DeFi and NFT infrastructure, it has a long way to go [...] However, in order to keep up with competition from other blockchains like Cardano and Ethereum, better updates and functionality must be released.”
The mysterious event has been revealed to be a hackathon.
Following the opening of Solana's global hackathon, named Ignition, on Tuesday, more bullish backstops appeared. Ignition will run until Oct. 8. The competition aims to attract people and ideas to the Solana public blockchain, which will help it develop and innovate.
Is there a link between SOL and burn? After the mysterious ‘Ignition' event was announced, the price of Solana reached $100 for the first time.
Over $5 million in prizes and seed capital will be distributed by Ignition, including awards from event sponsors such as Microsoft, Jump Capital, and Standard Chartered. Mango Markets, a renowned decentralized exchange based in Solana and the winner of one of the recent hackathons, will also contribute $30,000 to the prize pool.
Speculators mistook Ignition for a SOL burning event earlier this week, propelling SOL prices above $100 for the first time ever on Monday.
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