The price of Solana (SOL) has surged about 10% Week-To-Date (WTD), fueling speculation on possible causes. The coin went from trading at $150 at the beginning of the week to $168.28, its current price level.
Binance Wallet Staked SOL to Fuel a Price Action
It is worth acknowledging that this surge coincides with the news of a major Binance wallet that staked 150,011 SOL. The staked coins were valued at approximately $26.25 million at the time of the transaction.
Many netizens feared that the transfer would negatively impact the price of SOL. Before reaching its current level, Solana hit a high of $177.00 and then experienced a downturn.
– Advertisement –
Recent price action reflects strong market confidence, driven by significant staking and memecoin activity. However, its future price momentum depends on its capacity to exceed the $177 resistance level.
If it breaches this price level, it could aim for new highs before the end of the year. Based on predictions, hitting 177.22 could open the path toward the cryptocurrency’s $200 target.
Conversely, plunging below $150.00 would mark a potential decline, indicating a bearish trend continuation. To a large extent, analysts and market experts believe that SOL will reach $200 before October ends.
Solana Memecoin Surge Impacts Price
Generally, Solana has seen an upsurge of up to 400% this past year. The rise in new Solana-based memecoins is responsible for its positive momentum.
For instance, Solana-based Goatseus Maximus (GOAT) recently saw a spike of about 700% in just a month. Similarly, other memecoins, like POPCAT, MEW, and dogwifhat (WIF), have also registered increased transaction volumes on Solana’s network.
Solana’s potential for growth rests on several factors, including its scalability and low fees, making it attractive.
Solana Founder Appreciates Ethereum’s Design
Recently, Solana co-founder Anatoly Yakovenko praised a crucial infrastructure pioneered by Ethereum. This is despite the much-discussed rivalry between both blockchains.
Yakovenko is trying to borrow a leaf from Ethereum to enhance Solana. It is largely considered an Ethereum killer due to its high throughput and low transaction cost, but it has evolved over time.
The Solana founder acknowledged Ethereum’s design and vision, citing its execution layer. Yakovenko noted that if he was asked to build an alternative to Bitcoin,
“Ethereum settlement layer focused design is what I would steer the engineering towards.”
This statement is a big plus for Ethereum as it considers how the network would accommodate many execution environments. This network is at the forefront of the smart contract revolution and has continued innovating.
In the future, Ethereum expects the Pectra upgrade, which will further empower the mainnet and associated Layer-2 solutions. Another contributor to Solana’s growth is its Decentralized Finance (DeFi) ecosystem.
According to data from DeFiLlama, the Total Value Locked (TVL) is currently pegged at $6.315 billion. Jito, Raydium, and Kamino Finance are largely behind this Solana TVL. Should this sentiment progress, it might fuel scarcity, which is equally good for the SOL price.
