Solana (SOL) has emerged as a force to be reckoned with in the crypto space, experiencing a remarkable surge in growth with a whopping 16% increase over the past week. This achievement can be attributed to the robust DeFi and NFT ecosystem built on the Solana protocol, which has been growing at an impressive rate, causing a surge in demand for SOL.
Despite its impressive growth, the Solana team has been grappling with network stability issues, which have posed significant challenges. Nevertheless, the protocol has demonstrated remarkable resilience and continues to rank among the top performers in the altcoin market.
The recent stability it has enjoyed is a testament to the team’s relentless effort to overcome obstacles, and its current bullish momentum indicates that SOL is poised for a bright future.
Growing Ecosystem and Diverse Use Cases
Solana has been trending among the top-performing altcoins, and this can be attributed to its robust ecosystem diversity. The protocol’s DeFi and NFT ecosystem has been growing at a rapid pace, leading to a surge in demand for SOL. Solana is branded as one of the most versatile Layer 1 protocols, with the intention of unseating Ethereum (ETH) as the dominant smart contract hub.
The protocol still lags behind Ethereum on most metrics, but its DeFi growth uptick is a sign that the protocol has a bright future. Moreover, venture capitalist Chris Burniske says that Solana (SOL) could be setting itself up for a massive move to the upside if it can clearly break the 200-day simple moving average (SMA).
Potential for a Massive Move to the Upside
Burniske, a former ARK Invest analyst and a current partner at venture capital firm Placeholder, says that a big rally may be in store for Solana if it can clearly break the 200-day SMA. SOL’s 200-day moving average is currently hovering at about $23, and if it can reclaim this level, it could lead to a significant surge in price.
Burniske has previously predicted that Solana could be the next “Ethereum-level” opportunity should another bull market happen. Placeholder tends to pick an ecosystem or two for each bear market and build an aircraft carrier strategy around that ecosystem. The last bear market was ETH and Bitcoin, but SOL could be the next big thing.