SOL, the native asset of the Solana blockchain, hit a new high on Monday.
After traders reviewed a flurry of infrastructural advancements in the Solana ecosystem, including a recent $70-million crowdfund to support its blockchain-powered decentralized exchange, Mango Markets, the SOL/USD exchange rate rose by 26.12 percent to $65.467 on the Binance platform.
Mango is a platform that allows you to trade spot markets, lend money, and trade perpetual futures.
It gets liquidity via its local pools as well as Serum, a Solana blockchain-based exchange financed by billionaire Sam Bankman-FTX. Fried's
Other successful Ethereum-based decentralized exchanges, such as Uniswap and SushiSwap, have a similar functioning principle.
Wormhole, a communication protocol between Solana and other leading decentralized financial projects including Terra, Ethereum, and Binance Smart Chain, was launched on Aug. 9, and SOL-powered sales of the Degenerate Ape Project's 10,000 nonfungible tokens (NFT) took place over the weekend.
On the NFT sale on Solana marketplace Solanart, market analyst Pentoshi tweeted, "The very first day has already had over 200k SOL traded not even 24 hours in."
“On SOL, there are few prominent NFT projects, if any at all, but what happens once the market shifts?
The demand for SOL will drive prices to new highs, and the trend suggests that price discovery is imminent.”
Influence of the cryptocurrency market
As increases in leading cryptocurrencies stalled, the latest bull run in the Solana market appeared.
Bitcoin (BTC) and Ether (ETH) both came to a halt in the middle of their upward surges due to overvaluation concerns, with their relative strength index (RSI) indicators reporting readings above 70, indicating that traders believe these assets are overbought.
In the meantime, alternative cryptocurrencies have regained their upward impetus in the aftermath of Bitcoin and Ether's price stability.
Solana, for example, has risen by 57 percent in the previous seven days, much to XRP, which has also risen by 57 percent.
Cardano, Ethereum's main competitor, also saw a 47 percent increase in its native asset ADA, while meme cryptocurrency Dogecoin (DOGE) jumped 34 percent in response to new Elon Musk and Mark Cuban endorsements.
But, like Bitcoin and Ether, Solana now appears to be in danger of becoming overvalued.
Even while optimistic fundamentals ensured bullish backstops to the pair's continuous price advance, the SOL/daily USD's RSI reading touched 84 on Monday, raising profit-taking concerns.
SOL has already tested its 50-day exponential moving average as support during RSI-driven sell-offs.
The wave is currently trading at $36.56, down 41% from the price of SOL at the time of writing.
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