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Solana hits new all-time high of $145, posting 300% gains in a month

  • Solana has replaced Dogecoin as the seventh-largest cryptocurrency by market capitalization.
  • The altcoin is riding a wave of non-fungible token projects like Degenerate Ape Academy.
  • Ethereum-killers like Cardano, Solana and Polkadot are rallying and competing for dominance in the decentralized finance ecosystem.
  • Solana is now in price discovery mode after hitting a new all-time high at $145.

Solana has crossed $41.6 billion in market capitalization. Analysts expect the altcoin to remain in price discovery with non-fungible token (NFT) projects like Degenerate Apes and Kaiju Cards, driving SOL’s demand higher. 

Non-fungible token projects have triggered a prolonged rally in Solana

Solana is popular as an Ethereum alternative, a blockchain network that has proven scalability, relatively low transaction costs, and reduced processing times. In the ongoing price rally triggered by NFT projects launched on the SOL blockchain, the altcoin has replaced the Shiba-Inu-themed “Dogecoin.”

Analysts are now considering the likelihood of Solana flipping Binance Coin in terms of market capitalization. If SOL posted 2x gains, it would flip BNB. 

Pseudonymous analyst @SmartContracter tweeted

Degenerate Ape Academy has emerged as one of the most prominent NFT projects that have contributed to SOL’s price rally. Since the launch of the academy on August 15, the SOL price has increased three-fold. The project tested the SOL network’s scalability on the day of launch when 10,000 Apes sold out within eight minutes. 

Solanart, the network’s NFT marketplace, held the sale of Bold Badger Squad and Kaiju Cards, two popular projects, on August 19. This increased the transaction volume on the blockchain and fueled a prolonged price rally with consistent demand for SOL. As of August 30, 2021, over $100 million worth of SOL was traded on Solanart. 

Ethereum’s competitors Cardano (ADA), Polkadot (DOT) and Terra (LUNA) rallied alongside Solana. However, SOL posted the highest gains and tackled tests of scalability and security with the consecutive launch of NFTs on its blockchain. 

Pseudonymous crypto analyst @DonCryptoDraper considers $200 as the next price target for Solana.
 

Author

Ekta Mourya

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.

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