Experts foresee bubbly outlook as Solana price takes off
- Solana hit a new all-time high at $193.87, posting over 70% gains in a week.
- Solana summer continues, analysts expect the altcoin to reach the top three by market cap.
- JPMorgan Managing Director Nikolaos Panigirtzoglou warns traders that he expects a reflection of the ongoing retail investor mania.
Solana price rally has been influenced by explosive growth in the ecosystem, with 53% of the cryptocurrency projects trending on CoinGecko are built on the Solana blockchain.
SolSea tackles NFT impersonators in latest update
The Solana ecosystem’s non-fungible token marketplace SolSea has tackled NFT impersonators, an issue that has plagued the ecosystem for months now. After receiving a large number of reported fake listings, SolSea commenced an upgrade that is expected to last 48 hours.
SolSea has verified all major collections and put in place additional protection procedures for minting and listing NFTs on the platform.
We are sorry we haven't updated you in the last 4 hours:
— SolSea (@SolSeaNFT) September 6, 2021
1. all reported problems related to
technical operations of the platform- solved ✅
2. NFTs being locked in escrows, dedicated delisting page will be available tomorrow, so that people can delist their NFTs if they want.
The world’s largest peer-to-peer NFT marketplace, OpenSea – built on Ethereum – is faced with similar concerns, but the platform is yet to offer a solution to aggrieved NFT holders. SolSea has come up with a solution, tackling reported vulnerabilities.
Projects like SolSea in the Solana ecosystem are key to the ongoing rally. There is a consistent rise in the number of DeFi and NFT projects that are Ethereum alternatives and powered by the Solana blockchain. Though OpenSea currently enjoys a relatively large share of the NFT ecosystem, SolSea is set to compete for dominance with its latest upgrade.
Cryptocurrency data provider and aggregator CoinGecko has published a list of top 15 trending cryptocurrencies, with eight of them being built on the Solana blockchain.
Notable projects in the Solana ecosystem include Audius, Raydium and Serum.
Raydium and Serum fueling massive growth in SOL
Raydium is the automated market maker that works closely with Solana and Solana’s top project Serum. The automated market maker got listed on Binance in mid August, and since then, updates in the Raydium project have increased its demand among traders and investors.
Raydium ranks second in Total Value Locked (TVL) in the Solana ecosystem. As a liquidity provider for Serum –a decentralized exchange – the project has noted a meteoric rise. Raydium’s native token RAY is rallying towards its all-time high of $16.13, alongside Solana’s run to $200.
Earlier on Tuesday, Solana hit a new all-time high of $193.87, posting 145% gains in the month of August. Analysts expect the altcoin to continue its rally, and target Cardano after replacing Dogecoin as the seventh largest cryptocurrency.
Nearly 2x gain in Solana’s market capitalization is likely to trigger the flippening of Cardano, making SOL one of the three largest cryptocurrencies by market capitalization.
Lark Davis, cryptocurrency analyst and YouTube content creator, shared his bullish outlook on Solana:
#Solana is exploding!
— Lark Davis (@TheCryptoLark) September 7, 2021
What is behind the hype and how can you cash in on this trend?
Despite major network updates and rising demand for Solana based projects, analysts expect a pullback after the current rally. Pseudonymous analyst @AltcoinSherpa is of the opinion that a pullback is likely.
$SOL: Daily #Solana update, this should eventually pull back. That said:
— Altcoin Sherpa (@AltcoinSherpa) September 6, 2021
-this pullback will get bought the fuck up quickly
-SOL still 1 of the strongest coins out there
-I think bullish reaccumulation is more likely
-If big pullback, likely due to environment (ie. $btc down) pic.twitter.com/me5Sz7q6Fe
The rise of Solana and other NFT-related projects has also caught the eye of JPMorgan’s Managing Director Nikolaos Panigirtzoglou, who said,,
The August rally in non-fungible tokens and the pickup in decentralized finance exercise have helped not solely Ethereum but additionally various cryptocurrencies that facilitate or plan to facilitate good contracts, reminiscent of Solana, Binance Coin and Cardano...Retail investors are making cryptocurrency markets look frothy again.
Though Panigirtzoglou is of the opinion that the overall cryptocurrency market is behaving as it does ahead of a bubble pop, Solana continues its upward climb undeterred, posting higher gains than any other cryptocurrency in the top 10.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
