Solana has seen its SOL token worth surge by over 26% prior to now week, making it one of many best-performing cryptocurrencies within the high 10. The community’s token had reached its all-time excessive again in November of 2022 earlier than dropping to lower than $10 in June 2023. Now, SOL is about to surpass the $100 mark.
Regardless of solely having been round for 3 years, Solana is extensively thought of to be one of many potential “Ethereum killers” because of its excessive speeds and low frees. The current spree mirrors that of everything of the crypto market and has been boosted by information of a brand new stablecoin becoming a member of the community, in addition to the revival of meme cash and NFTs.
NY Regulator Approval Permits First Solana Stablecoin
In keeping with Fortune, Paxos has been authorized by New York’s monetary regulator to increase its providers to Solana. The approval signifies that Ethereum would not be the one community able to working with USDP natively. With a market capitalization of over $370M, the information of USDP’s growth to Solana shortly contributed to its efficiency.
A serious distinction between Paxos and different main stablecoins is the corporate’s resolution to collaborate with regulators, which prevented it from increasing as quickly as its opponents. Up till this level, New York’s Division of Monetary Providers had solely approved Paxos to function within the Ethereum community.
Paxos’ resolution to increase to Solana comes at a time when the agency can be collaborating with PayPal to subject a brand new stablecoin: PYUSD. In keeping with Walter Hessert, Paxos’ Head of Technique, PayPal would even have an curiosity in cementing a presence within the Solana community, which might additional improve the adoption of the protocol.
Memecoin Mania Boosts Solana
One other key driver of Solana’s worth surge is the recognition of Bonk Inu ($BONK), a memecoin created as a direct response to FTX’s downfall. Equally to DogeCoin and Shiba Inu, BONK lacks any goal past that of being transactable and a parody of different cash. This, nevertheless, hasn’t stopped the coin from rising in worth by greater than 300% over the previous month.
With a market capitalization of greater than $1.1B and $304M in buying and selling quantity, the token’s virality has additional boosted Solana’s development. The token was additionally linked to Solana’s Saga Smartphone, as an unique airdrop of 30 million BONK was made accessible to those that owned the telephone.
Binance’s current resolution to launch a BONK futures providing has additionally contributed to the recognition of the memecoin. This comes lower than two weeks after the itemizing of BONK on the earth’s largest alternate, which has a 24-hour buying and selling quantity of over 120M USDT within the platform on the time of writing.
NFT Quantity Flows Again to Solana
With NFTs additionally making a comeback over the previous months as main names launch new collections, Solana has additionally benefited from its share within the ecosystem. Tensor, Solana’s hottest NFT market right now, has allowed Solana to draw an rising variety of collectors from different networks.
Whereas Tensor co-founder Ilja Moisejevs informed Bloomberg that VCs would fairly see {the marketplace} transfer to a different community in its early days, opinions appear to have modified already. Tensos surpassed Magic Eden in buying and selling quantity earlier this month after rumors of airdrops grew to become widespread amongst members of the NFT group. At this time, Tensos accounts for 75% of all NFT buying and selling quantity within the Solana community based on its personal knowledge.
Solana has additionally emerged as one of many high 5 gaming blockchains by transaction depend, based on DappRadar and the Blockchain Gaming Alliance’s Q3 Report. That is regardless of a quarter-to-quarter change of -42% that noticed the community lose its dominance to Wax.
