Solana operates on a decentralized system similar to several Proof-of-Stake (PoS) cryptocurrencies. Instead of relying on miners, it depends on validators who maintain the network’s security by locking up their SOL coins as collateral. In return for this commitment, validators are compensated with rewards.
Yet, as the price of Solana started climbing upwards recently, there was an observable decrease in the amount of SOL tokens being staked. It’s possible that certain validators decided to withdraw their coins, possibly to cash in on the price increase and secure some gains before prices drop.
Solana Market Cap And Price Soar
On Tuesday, Solana experienced a remarkable gain, increasing by 17% and boosting its market value to over $70 billion. This significant growth allowed Solana to surpass Bitcoin (BTC) and Ethereum (ETH), which were preoccupied with their own price fluctuations. As a result, Solana’s market capitalization reached an impressive $80.7 billion, attracting widespread attention in the crypto community.
Over the past week, this staking activity has attracted notice from analysts, with the total amount yet to be staked reaching a substantial $5 million in Solana tokens. Given that Solana’s coin price is approximately $157, this equates to around $780 million being put back into circulation. The sudden influx of such a considerable volume could potentially result in an oversupply situation on exchanges, causing a temporary market imbalance.
Pullback Or Power Through?
The potential impact of unstaked SOL on the price is a matter of debate. Without a corresponding surge in demand to absorb this additional supply, there’s a risk of an initial price correction in the coming days. This could see Solana retreat from its current perch and settle around the $150 mark before potentially resuming its upward trajectory towards $200.
The $200 Target
In the upcoming days, Solana’s fate hangs in the balance. The bulls must keep up their robust buying activity to absorb the coins yet to be staked and surmount the $160 barrier. If they manage this feat, Solana could soar towards its goal of $200. Conversely, if the bulls falter and a massive sell-off ensues from unstaked SOL, Solana may plummet to $150 instead.
Solana Breakpoint 2024
Additionally, it has been announced that the Solana Breakpoint 2024 conference will be held in Singapore, running from September 20th to 21st. Attendees can look forward to immersive experiences, gaining valuable insights through engaging presentations, and being part of exclusive events within the vibrant Solana community.
Developers, creators, artists, and students can take advantage of discounted rates for this groundbreaking event, making it accessible to people from all walks of life. The Solana Campus, situated a quick 15-minute ride from Amsterdam’s city center, features an array of speaking stages for enlightening discussions, zones for fostering new relationships, and free transportation for guests’ ease.
At Solana Breakpoint, the Solana community gathers annually to explore new advancements, exchange ideas, and demonstrate accomplishments. This event brings together developers, validators, and other ecosystem members. The conference underscores Solana’s capabilities and significance within the blockchain industry, emphasizing its strengths in delivering exceptional performance, unwavering reliability, and groundbreaking innovation.
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2024-04-24 16:16