SOL value nears $200 after FTX’s Solana-enabled NFT market goes dwell
Solana (SOL) bulls have largely ignored its overvaluation dangers because the blockchain asset goes after one other milestone value stage.
The SOL/USD exchange price virtually reached $200 on Sept. 7 as traders continued to deal with Solana as a long-term competitor to Ethereum, the world’s main good contracts platform.
More bullish proof got here on Monday after Sam Bankman-Fried (SBF), the CEO of crypto derivatives platform FTX, introduced Solana’s integration into their upcoming nonfungible token (NFT) market.
On Sept. 6, SBF revealed that the brand new market would allow NFT creators and homeowners to commerce their digital arts cross-chain utilizing Solana and Ethereum. The platform would additionally make it doable to commerce NFT collections from rivaling market OpenSea on FTX.
The NFT market went dwell on Monday and is hosted by FTX.US, a United States-regulated cryptocurrency exchange backed by FTX. That allows U.S. customers to mint and commerce NFTs through FTX.
NFT increase behind Solana rally
NFTs exist on blockchains, the general public ledger expertise that retains observe of who owns the digital property. Therefore, performing duties resembling minting an NFT token or processing a digital asset transactions entail a payment.
Most NFT-related transactions happen on Ethereum; it occurs even because the community points endure from increased congestion and inflated fuel charges points. Data fetched by EtherScan reveals that Ethereum’s fuel charges reached their highest ranges since May final week.
“As NFT activity commands ecosystem attention, gas prices have risen to daily levels that price out many retail traders,” Luke Posey, a researcher at blockchain analytics agency Glassnode, wrote in a note Wednesday.
Solana’s public base-layer blockchain protocol proposes to cast off Ethereum’s efficiency bottlenecks. In addition, its lowered fuel charges prospects have made it an rising participant within the NFT business, backed by the launch of devoted digital collectibles marketplaces resembling Solanart, DigitalEyes, and its integration into music streaming platform Audius.
Major gamers within the crypto area have acknowledged Solana’s potential towards Ethereum. In June, SBF-backed Alameda Research led a $314 million funding spherical for Solana backed by enterprise capital agency Andreessen Horowitz, Polychain Capital and CoinShares.
SOL to $500?
Greg Waisman, co-founder and COO at cost community Mercuryo envisioned exponential development for the Solana ecosystem based mostly on its rising adoption among the many decentralized finance (DeFi) and NFT area.
He Solana’s increase seems just like Ethereum and Binance Smart Chain, including that it might increase SOL/USD exchange price to as excessive as $500 within the second half of 2021. Excerpts from his assertion:
“Solana is potentially a $500 digital coin, and the price growth of Solana in recent times points to the capacity of the token to receive enough boost to hit this mark before the end of H2 2021.”
On the flip aspect, analysts at JPMorgan & Chase warned shoppers about overvaluation dangers within the altcoin and NFT area, stating that the latest rally is “more likely to be a reflection of froth and retail investor ‘mania’ rather than a reflection of a structural uptrend.”
Related: JPMorgan sounds alarm over ‘frothy’ crypto markets after August boom
On Tuesday, SOL/USD’s quarter-to-date returns reached a little over 450% as it established its all-time high at $196.78. Since then, the pair has already pulled back as traders take profits.
The views and opinions expressed listed below are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Every funding and buying and selling transfer entails threat, you must conduct your personal analysis when making a choice.