Solana (SOL) has emerged as a power to be reckoned with in the cryptocurrency market, enjoying a stunning leap in growth with a massive 18% gain over the previous week as the asset recorded a 2.3% increase within 24 hours of the time of writing.
With an increase in trading volume of over 145% within 24 hours, the asset trades at $22.6.
This accomplishment may be credited to the thriving DeFi and NFT ecology established on the Solana protocol. This ecosystem has been expanding at a rapid pace, which has led to an increase in the demand for SOL.
Solana’s ecosystem variety is one reason it has recently risen among the best-performing alternative cryptocurrencies. Solana aims to displace Ethereum as the primary smart contract hub by marketing itself as one of the most adaptable layer-1 protocols and having the objective of doing so.
While being behind Ethereum on most measures, the protocol’s positive future is seen in its recent DeFi growth increase. Chris Burniske, a venture entrepreneur, has speculated that its native token, SOL, might be preparing for a significant move to the upside if it can decisively breach the 200-day simple moving average (SMA).
Despite the price surge, the Solana team has been struggling with concerns regarding the network’s reliability, which have presented several significant hurdles.
Solana price analysis
Solana might be in for a massive rise if it can decisively breach the 200-day SMA, according to Burniske, a former ARK Invest analyst and current partner at venture capital company Placeholder. The 200-day moving average for SOL is now at $23, and a successful move back above this level might trigger a significant price increase.
For Burniske, Solana represents the next “Ethereum-level” opportunity in the event of a bull market. Each time the market drops, Placeholder focuses on one or two ecosystems, on which it bases an “aircraft carrier” approach. Ethereum and Bitcoin led the latest cryptocurrency downturn, but SOL has the potential to become the next big thing.