Solana (SOL), the native token on the popular proof-of-stake (PoS) blockchain, became the sixth largest cryptocurrency by market capitalization after a stellar rally in the past week. The token jumped two spots in the list on Thursday, overtaking Ripple (XRP) and Cardano (ADA), while also avoiding broader weakness in the crypto market.
SOL is up nearly 17% in the past seven days, most recently trading around $120, its highest level since late November. The token also rose 0.4% in the past 24 hours, while the broader crypto market fell about 5%.
The token rose in the second half of March and recovered sharply from a seven-month low in the middle of the month. It had overtaken Terra (LUNA) earlier this week for the No. 8 spot in the top 10 cryptocurrencies.
SOL sees bullish indicators as recovery continues in mid-March
Popular Twitter Analyst @SmartContracter noted that SOL had shown a bullish morningstar pattern for March, indicating it would further recover from losses earlier this month. The token is up close to 33% from its March low of around $81.
@SmartContracter also noted that SOL’s Bitcoin (BTC) pair showed a “clear” ABC pattern, showing that the token was poised for more gains.
Institutional Interest, Video Games Hope Stimulates Solana
SOL benefited from a slew of positive news until March. Last week, digital asset manager CoinShares and world No. 3 crypto exchange FTX jointly launched an exchange-traded product that offers SOL staking rewards without purchasing the token directly. The product is mainly aimed at institutional investors and is expected to attract a lot of capital to SOL.
The token also accounts for nearly a quarter of the weighting in a recently launched smart contracts fund by digital asset manager Grayscale. Large-scale trading by investment houses is credited with fueling a massive crypto rally in 2021, and as such is mostly a bullish indicator.
Krafton, developer of the wildly popular PUBG video game, teamed up with Solana Labs last week to develop blockchain games, bringing more attention to the token.
Ethereum’s planned shift to a PoS model has also fueled interest in other projects in the space. After recent gains, SOL is the second largest player in the space.
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About the author
With over five years of experience in global financial markets, Ambar plans to leverage this knowledge for the fast-growing world of crypto and DeFi. His main interest lies in finding out how geopolitical developments could affect crypto markets and what that could mean for your bitcoin holdings. When he’s not scouring the internet for the latest news, you can watch him play video games or watch Seinfeld reruns. You can reach him at [email protected]
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