Ethereum competitor Solana (SOL) has led price gains in a rally of top cryptocurrencies as investors’ risk appetite rises for altcoins amidst capital rotation from the recent revival in Bitcoin, analysts said.
The rally in SOL and other altcoins bulked the overall cryptocurrency market trend while most coins fell, dragged lower by profit-taking on Bitcoin’s recent gains.
The Solana price posted double-digit gains, adding 15.6 percent over the past week following news of a partnership with South Korean gaming giant Krafton, the studio behind PUBG, a last-man-standing shooter game.
The deal will see the two companies cooperate on the development, operation, design, and marketing of blockchain- and NFT-based games and services.
SOL was trading at $132.83 as of this writing, sustaining above the $120 support level and extending a three-week rally that has added more than 60 percent to its value.
Here are three things you need to know about Solana’s recent bull run:
A public blockchain platform with smart contract functionality, Solana claims to offer faster transaction times and lower costs than its main competitor, Ethereum.
While some analysts remain bullish on the crypto touted as the “Ethereum killer,” predicting a continuation of the altcoin’s uptrend, according to FX Street, others anticipate a pullback after the recent rally.
Enthusiasm around the “Solana Miami” event, set to launch on April 5, 2022, may have given the SOL price a boost. The event will bring together the developer community with a plan to build on the altcoin’s network.
“There is a search for new ideas, away from institutional capital and the eyes of politicians,” FxPro market analyst Alex Kuptsikevich told CoinDesk. “There is an influx of stablecoins to centralized platforms, which may indicate the interest of investors in the upcoming purchases of cryptocurrencies.”
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OpenSea’s decision to integrate Solana’s NFTs into its marketplace on March 29, 2022, might have also boosted SOL’s price. OpenSea is the world’s biggest nonfungible token (NFT) marketplace by volume.
The recent SOL rally coincided with Solana-based NFT marketplaces recording their best day on March 29 in terms of volumes and transactions, according to data from Dune Analytics.
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