Crypto Analyst Explains What’s Driving Solana ($SOL) Price Higher
Recently, popular New Zealand-based crypto analyst Lark Davis (@TheCryptoLark on Twitter) explained why Solana’s $SOL token has been outperforming in 2021. Also, we look at updated $SOL price targets from other another prominent analyst.
$SOL is the native token of the Solana blockchain. Solana is “an open source project implementing a new, high-performance, permissionless blockchain” that is maintained by the Geneva-based Solana Foundation.
According to a report by The Daily Hodl, in a video released last Tuesday, Davis told 430K subscribers of his YouTube channel that there were five main reasons behind $SOL’s meteoric price rise this year:
- Builders / Developers
Builders are actually showing up… You got to have stuff built on your blockchain. Otherwise, you’re a ghost town. Solana is definitely not a ghost town. We have loads of applications built on Solana [that] you can actually go out [and] use right now, today…
- NFTs and Gaming
NFT has been a massive trend recently. Solana’s got a lot of NFTs, too. That’s been part of what has been driving the demand: to get the main Solana asset, the SOL token, because people want to go and buy NFTs on Solana, which are priced in Solana.
- Excellent Financial Health (or “truck loads of cash” as Davis puts it)
Part of the reason we’re seeing so many developers committing to the SOL ecosystem right now – they’re getting money. They’re getting grants. They’re getting a lot of investments… So it’s $314 million, plus the backing of FTX, which having a cryptocurrency exchange that big, that’s like [having] more money than God.
- Institutional Interest
Institutional money is starting to take a interest in Solana. Osprey, they announced a Solana fund two weeks ago. They are far from the only big-money players piling into Solana right now.
- Rapidly Growing DeFi Ecosystem (with over $11.57 TVL in Solana DeFi)
According to data by TradingView, on crypto exchange FTX, the $SOL price set the current intraday high of $171.4475 at 00:15 UTC on September 14. At the time of writing (09:30 UTC on September 12), SOL-USD is trading around $169.1925, which means that it is up 8.23% in the past 24-hour period.
On September 8, pseudonymous crypto analyst “Bluntz” told his over 163K Twitter followers that he believes that $SOL is headed to $300 (presumably, in the medium term).
Then, earlier today, he gave his long-term price target for $SOL.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Image by “wilhei” via Pixabay
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