- Institutional demand has increased over the past two weeks as Osprey Funds registered a Solana trust ahead of competitor Grayscale.
- The launch of NFT collections on Solana has created a positive feedback loop for Solana's price.
- Charles Hoskinson, the founder of Cardano, shows interest in Solana.
Solana's "wormhole project” gains popularity in the cryptocurrency ecosystem, traders and analysts await the launch of the three-way cross.
Solana price crosses $100; wormhole project triggers rally
Solana's "wormhole" project is a bi-directional bridge that allows projects, platforms and communities to move tokenized assets across blockchains. The project also facilitates message exchange across blockchains, and more decentralized applications now benefit from Solana's high speed and relatively low cost.
Currently, the "wormhole" is live and supports the exchange of assets from the Ethereum blockchain. The Solana team has plans to expand the bridge and make it a three-way cross. This implies that the project will include Terra.
The community is awaiting further updates on the project, and it has garnered attention from traders and analysts. The 2.0 launch of the cross-network bridge is a trigger for SOL's ongoing price rally.
As Solana gains popularity as a faster and cheaper "Ethereum alternative," it has captivated institutional investors. Osprey Funds, a digital asset investment firm, has applied to the Securities & Exchange Commission (SEC) for a Solana trust, ahead of competitor Grayscale Investments, implying there is an increase in demand from institutions.
Institutions have a bullish outlook on Solana due to the increase in the on-chain activity on the altcoin's blockchain. The launch of the Degenerate Apes NFT collection drove a surge in transaction volume on the SOL network, garnering attention from creators and token holders in the Solana ecosystem.
Solana's rival blockchains are competing with it for dominance in the non-fungible token and decentralized finance ecosystem. Charles Hoskinson, founder of Cardano, one of SOL's top competitors, recently commented on the altcoin's updates and progress.
@solana you guys seem to be making waves. Congratulations. Where can I learn more?— Charles Hoskinson (@IOHK_Charles) August 30, 2021
Hoskinson is likely interested in SOL's technical progress since Cardano has similar milestones in onboarding decentralized applications, building cross-network bridges, and facilitating token transfer across ecosystems.
SOL price is up 88.5% in less than 15 days, and the price has crossed $100 a few times today. A cryptocurrency analyst behind the Twitter handle @CerbulBTC had predicted SOL's rally to $100 less than a week ago.
I don't think this is the top of $SOL #Solana price.— Cerbul (@CerbulBTC) August 23, 2021
My $67 long-term target has been hit, took a long time, I thought it wouldn't get there so fast anyways.
New targets on the chart, with the nearest psychological price of $100.
Close links w/ FTX.#SolanaSummer #SOL https://t.co/LAHLFxPwAO pic.twitter.com/8XMV6BDkDa
The analyst rejected the previous rally as the altcoin's top and stated that the next psychological target for SOL is $100. Overall, SOL is currently in the price discovery mode.
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