Solana (SOL), the native token of the eponymous blockchain, lately overtook Terra’s LUNA to reclaim its spot because the eighth-largest crypto token by market capitalization. The rally comes on a string on optimistic information that drove demand for the token via final week.
SOL, which is probably the most staked token available in the market, jumped 21% within the final seven days, and was buying and selling close to a two-month excessive of $110. It presently sits at a market capitalization of $35.9 billion, having lately surpassed the $33 billion of LUNA. The transfer comes solely about two months after LUNA had surpassed SOL in market capitalization- though a significant factor on this was additionally due to losses in SOL.
LUNA lagged its friends via final week, and was buying and selling at ranges seen final Monday. However the token has additionally benefited enormously this 12 months from the rising reputation of the stablecoin TerraUSD (UST).
Gaming partnership, institutional curiosity increase SOL
Krafton, the South Korean developer behind the wildly fashionable videogame PUBG, final week mentioned it was collaborating with Solana Labs to develop blockchain video games and even a metaverse. The developer cited Solana’s characteristic to host extremely scalable functions as one of many key drivers behind the deal.
Digital asset supervisor CoinShares, and world no. 3 crypto trade FTX entered a partnership final week to launch a physically-backed Solana trade traded product (ETP) for European traders, which permits merchants to entry SOL staking rewards with out straight investing within the token.
The ETP will launch with 1 million SOL ($100 million) in seed capital. The product caters largely to the institutional market, which has develop into a significant driver of crypto costs in recent times.
Moreover, SOL additionally makes up practically 1 / 4 of weightage in a recently launched smart contracts fund from digital property supervisor Grayscale. The transfer can also be anticipated to spice up institutional funding within the token.
Broader crypto sentiment additionally improves
The broader crypto market has additionally been having fun with a growth in curiosity during the last week. Whole crypto market capitalization jumped 12% to commerce above the $2 trillion mark for the primary time since February.
Positive aspects in prime altcoin Ethereum (ETH), pushed by the ETH chain’s impending swap to a proof-of-stake (PoS) mannequin, have spilled over into most different fashionable initiatives. The swap has additionally drawn consideration to a number of different PoS tokens, benefiting SOL.
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