The Solana price is holding steady even as other cryptocurrencies sell off after the strong US inflation data. SOL is trading at $45.97, which is slightly below the intraday high of $48.13. Still, it is up by more than 10% in the past 24 hours. Its market capitalization is at $12.5 billion, making it the 17th-biggest digital currency in the world.
Solana has been rising
Solana has emerged from obscurity to become one of the biggest digital currencies in the world. The price of the Ethereum killer has jumped by more than 4,000% from its lowest level this year.
This growth is attributed to three main factors. First, it was part of the overall rally of digital currencies. Indeed, all the major currencies have rallied during this year’s bull run. When this happens, it usually leads to the fear of missing out (FOMO). Second, low-interest rates have helped boost Solana’s price.
Third, and most importantly, its ecosystem has continued to grow. For starters, Solana is similar to Ethereum in that it helps developers build decentralized applications. SOL is the native currency for this ecosystem.
Today, there are hundreds of projects built on Solana. Some of them are Tether, Chainlink, Terra, Waves, and The Graph, among others. Precisely, there are 151 projects currently running on Solana. They are in different categories like analytics, NFTs, and exchanges, among others. Developers love it for its speed, security, and lower cost compared to Ethereum.
Projects built on Solana
Solana price prediction
The daily chart shows that the SOL price has been in a strong upward trend in the past few months. However, in the past few days, the currency has been in consolidation mode. It has remained between the narrow range of $50 and $40.
A closer look shows that the currency seems to be forming a bullish flag pattern that is shown in green. Most importantly, the price is still being supported by the 25-day and 50-day moving averages. This means that bulls are still hanging on. Therefore, I predict that the price will soon break out higher. If this happens, the next key level to watch is $60, which is about 30% above the current level. Nonetheless, a drop below $40 will invalidate this trend.