Solana made headlines this week after a 90% increase. Here are three possible reasons for the astronomical rally.
Solana is without a doubt one of the hottest projects this year, with a lot of attention from the community for some time now.
However, the last 7 days have been an absolutely wild ride for Solana’s price as it has gone up by 90% over the period. The graphic is certainly impressive:
- 3 reasons for a 90% increase in Solana (SOL) in 7 days.
The astronomical rally saw the price of SOL drop from just under $40 to its current high of $75, and also saw interest in the cryptocurrency increase by about 15% over the same period.
That said, let’s look at 3 reasons for the 90% increase in Solana (SOL) in 7 days.
Broader market recovery
At the outset, it’s important to note that Solana’s price isn’t the only thing that has risen over the past week.
The entire market is painted green, as seen in the heat map below.
It becomes clear that Solana isn’t the only cryptocurrency that registers remarkable gains – many of them are. Luna has similar gains, while some larger-cap altcoins, such as Cardano’s ADA and Ripple’s XRP, are also well above 40% in the green.
The recent rally in the market last month must certainly have pushed Solana’s price onto a positive trajectory – as is almost always the case in the cryptocurrency market.
NFT Mania and Degenerate Ape Academy
In recent weeks, non-fungible tokens (NFTs) are once again highlighted. Many projects are being built in this field, and the same is true for the teams in Solana.
One of the most recent efforts in the field of NFTs is Degenerate Ape Academy. In essence, it’s a platform that coined 10,000 monkey-themed NFTs, and users were able to coin them at the cost of 6 SOL per pop.
The first minting process was a failure as the platform was overwhelmed with demand, but they succeeded on the second attempt, and all 10,000 monkeys were sold out in less than 10 minutes, creating great excitement in the community. Here is just one example of how monkeys are sketched:
All monkeys have different characteristics with various rarities. For example, the hat can be super rare while the shirt – just common, and so on.
Arweave’s founder – Sam Williams – took it to Twitter to reveal that the daily request on the platform reached 60 million requests per day. Also, when Degenerate Ape Academy’s NFTs went down, their platform received 1 million requests in a single minute.
In any case, it’s not clear whether or not this project alone was responsible for the huge increase in demand for SOL, but it’s definitely part of the reason.
Solana’s General Growth
Solana’s community is growing in all areas, with many proponents highlighting its benefits over competing block chains such as Ethereum.
Audius – a project focused on music streaming, is one of the most popular in the entire space – it has more than 1 million monthly listeners. He moved to Solana and also recently announced an integration with TikTok, where users can share tracks directly from Audius to TikTok.
Another thing to consider is the first conference organized by Solana. Break Point will take place in November, and it will be in Lisbon. Some of the speakers include Jeremy Allaire, Circle co-founder and CEO, Sam Bankman-Fried – CEO of FTX, Meltem Demirors CSO of CoinShares and many more.