• 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. 

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. 

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. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: The last rebound before capitulation

Bitcoin: The last rebound before capitulation

Bitcoin is showing bullish signs in the lower time frames, which can be taken advantage of by traders in the next couple of days. But looking at BTC from the higher time frames suggests that the bottom is not in yet.

Read full analysis

BTC

ETH

XRP