Despite the global crypto market losing more than $200 billion, the sixth-largest cryptocurrency by market cap remains one among the strongest performers.
Even in the face of a severe sell-off in the cryptocurrency market on Tuesday, a high-flying Solana (SOL) refused to land. The price of SOL returned two days later to a new all-time high.
The SOL/USD exchange rate avoided a major drop in the preceding 48 hours, reaching $217 for the first time.
Investors’ growing interest in Solana’s blockchain as a potential alternative to Ethereum, the public ledger currently dominating the decentralized finance (DeFi) and nonfungible token (NFT) sector growth, was highlighted by the pair’s capacity to sustain adverse pressure.
“The SOL outperformance in the market recently is more or less the continuation of its growth run in recent times,” said Petr Kozyakov, co-founder and CEO at payment service firm Mercuryo.
“With more than two different NFT project launches and minting going on in the ecosystem per day, there is an unending demand for SOL from retail buyers. As a result, it has kept the price up more than 50% this week despite a market-wide crash.”
Solana hosted the NFT Degenerate Ape Academy’s debut on Aug. 15, which featured a collection of 10,000 cartoon apes. They sold out in less than eight minutes and cost 96,000 SOL ($5.9 million).
Solana’s journey into the NFT arena began this week with the launch of an FTX-backed digital collectibles marketplace. NFT producers and owners will be able to exchange their digital masterpieces cross-chain utilizing Solana and Ethereum, according to FTX, a crypto derivatives platform.
Solana beats top rivals
Following a sharp sell-off on Tuesday, the cryptocurrency market lost more than $200 billion in value. Bitcoin (BTC), the most valuable digital currency by market capitalization, saw its price drop from over $52,000 to over $42,000 in minutes, owing to a cascade of long liquidations, according to analysts.
Alternative cryptocurrencies, or altcoins, fell in lockstep with Bitcoin, with the second-largest, Ether (ETH), falling by up to 23.41 percent and its runner-up, another smart contract rival, Cardano (ADA), falling by 30.89 percent.
Solana, on the other hand, was an exception in the sea of red. While the SOL/USD fluctuated wildly between gains and losses, it ended the day 5.45 percent higher and continued to move higher in the following sessions.
After bottoming out at $21.96 on July 20, the pair has risen about 890 percent. At the same time, according to data supplied by SolanaProject.com, the total value locked inside Solana-based DeFi projects has surpassed $7.81 billion.
SOL is expected to reach $500 by the end of 2021, according to Greg Waisman, Mercuryo’s co-founder and chief operating officer. He added:
“Solana’s growth runs appear to be mimicking that of Ethereum (ETH) and Binance Coin (BNB), and the $500 projection may turn out to be a conservative one for the coin.”