Solana (SOL), the seventh-largest cryptocurrency by market capitalization, weathered a violent sell-off last week, which coincided with El Salvador’s adoption of Bitcoin as legal money.
Analysts are impressed with SOL’s price resiliency.
That rapid plunge took away more than $200 billion from the worldwide worth of cryptocurrencies, raising worries of a worse drop. On the other hand, SOL bucked the odds and rallied to a new lifetime high above $217 just a few days later.
Since last month, SOL has been inundated with requests from merchants. As a result, the token’s value has increased by 50% in the last week due to the significant purchasing demand. After gaining 7% in 24 hours, the popular cryptocurrency beat most of its competitors on Tuesday.
Kent Ekasak, a worldwide investor with Croton Capital & Bodhi Foundation, was impressed by the cryptocurrency’s capacity to flourish in a market beset by negative pressure.
According to the analyst, Solana’s recent spectacular climb was not fueled by any reward incentive, marketing effort, or founder pitching. Rather, he attributed the increase to new customers learning about the undervalued initiative through word of mouth from other retail investors.
Solana leads the Gainers
The crypto market has performed significantly better this week, with tokens like Terra (LUNA) and Avalanche (AVAX) gaining double digits. As more currencies trade in the green, the overall crypto market capitalization has risen back beyond $2 trillion.
On the other hand, Bitcoin is range-bound between $44K and $46K, as bulls attempt to reclaim control of the coin’s price. According to experts at ZebPay Trade Desk, the weak price behavior is due to market players diverting their capital to other projects like Solana.
“Investors are not inactive, but seem to be investing elsewhere, namely in Solana, with SOL investment products showcasing a whopping 86.6% of total weekly inflows crypto investment products over the past week,” the analysts noted.
Following its recent foray into the NFT market, Solana continues to attract greater investor attention. With the debut of its NFT Degenerate Ape Academy on August 15, the growing blockchain initiative garnered headlines.
Solana outperforms top smart contract competitors.
Over the last several weeks, the hot cryptocurrency has outperformed smart contract competitors Ethereum and Cardano.
ETH fell by almost 23% during the most recent market pullback, while ADA fell by a whopping 30%. On the other hand, SOL was able to hang on to its gains, finally finishing the day 5% higher, and has continued to rise since then.
Since mid-July, when it hit a low of $21, the SOL price has risen over 900 percent. According to statistics from SolanaProject.com, the total value locked (TVL) in Solana-based projects has also reached $11 billion for the first time in history.
Mercuryo co-founder Greg Waisman set an SOL price target of $500 before the end of the year due to the company’s rapid development.