Solana (SOL) did not decline even in the wake of the heavy sell-off in the cryptocurrency market on Tuesday. Two days later, the SOL price even rose to a new all-time high.
The SOL / USD pair has managed to avert a sharp decline in the past 48 hours, hitting the $ 217 mark for the first time.
The fact that the pair defied the downward pressure shows that investors are becoming increasingly interested in the Solana blockchain as an emerging competitor to Ethereum. Ethereum is currently still leading the boom in decentralized finance (DeFi) and the NFT sector.
“This recent strong development at SOL is more or less a continuation of recent growth,” said Petr Kozjakow, co-founder and CEO of payment service provider Mercuryo.
“Every day more than two different NFT projects come onto the market, but the demand for SOL among private traders is still unbroken. That is why the price rose by over 50 percent this week, despite the market slump.”
On August 15th, Solana hosted the opening of the NFT Degenerate Ape Academy. That’s a collection of 10,000 cartoon monkeys. In just 8 minutes these were sold out and could bring in 96,000 SOL or around 5.9 million US dollars.
Solana continues to break into the NFT space and earlier this week launched an FTX-supported marketplace for digital collectibles. FTX is a platform for crypto derivatives and announced that NFT creators and owners will be able to trade their digital works of art across chains with Solana and Ethereum with this new NFT project.
Solana overtakes competition
The cryptocurrency market lost over $ 200 billion in market cap in a sudden slump on Tuesday. The leading digital asset by market cap, Bitcoin (BTC), slumped from over $ 52,000 to nearly $ 42,000 in just a few minutes. Analysts attribute this to liquidations of long positions.
The altcoins have largely followed the example of Bitcoin and have fallen with it. The second largest cryptocurrency, Ether (ETH), fell by up to 23.41 percent. Cardano (ADA) is down 30.89 percent.
However, Solana was an exception while the rest of the market was in the red. The SOL / USD exchange rate fluctuated wildly between gains and losses, but ended the day with a plus of 5.45 percent. Then it continued to climb.
The pair is up nearly 890 percent since its low of $ 21.96 on July 20. The total value of the DeFi projects, which are also building Solana, has surged to over $ 7.81 billion, according to data from SolanaProject.com.
Mercuryo co-founder and operations manager Greg Waisman told Cointelegraph that SOL expects to climb to $ 500 by the end of 2021. He explained:
“The growth of Solana is similar to the growth of Ethereum (ETH) and Binance Coin (BNB). $ 500 could turn out to be a conservative forecast for this coin.”
The views and opinions contained herein are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading carries a risk and one should research well before making a decision.