Solana Rallies 10% Alongside the Bullish Bitcoin and Ethereum

Solana ecosystem’s TVL rose 2.2% over the day to reach $294.6M.
Solana NFTs exhibit a spike of over 38% in the 24H sales volume.

Solana (SOL), popularly known as the “Ethereum-Killer” crypto, jumped over 10% in the last 24 hours to trade at $22.40 at press time. Contrarily, Bitcoin and Ethereum pulled on short but significant spikes — less than 10% – in the last 24h.

The day noted the world’s largest cryptocurrency, BTC, surpassing $30,000 with a 24H price surge of 6.25%. On the other hand, the rival Ethereum (ETH) soared over 3.4% to trade above $1,900.

As per the above chart, Solana laid a price candle above the 50-day moving average to confirm its bullish trend. Furthermore, the chart recorded the relative strength index (RSI) of SOL at 60 on the scale. Thus, SOL currently hovered in neither an oversold nor overbought state. If the RSI surpasses and enters the 70 range, it would display an overbought state with sell signals.

Significantly, Solana’s notable price surge is accompanied by a massive hike in SOL’s trading volume. As per CoinMarketCap, the 24H trading volume increased by 333%. At the time of writing, 391,697,821 SOL were in circulation, adding up to the token’s $8.7 billion market cap that surged 11.25%. However, at press time, this crypto was nearly down 91% from its ATH of $260.06 in November 2021.

Solana’s NFT-related Updates

There is speculation that the recent price rise owes to the existing and upcoming NFT-related upgrades in the Solana ecosystem. Firstly, it is the introduction of state compression in the network. This technique predominantly deploys Merkle trees to store the on-chain data in small bits via direct integration to the Solana ledger. Specifically, this cuts down the NFT minting cost by 2.4k-24k times. That is, the cost of minting 1 million NFTs before compression would be $250k, but after compression, it would be $110.

Secondly, the long-anticipated launch of Solana’s Web3 mobile “Saga” is scheduled to launch on April 13. Interestingly, users are intrigued by the NFT minting app that will allow them to mint NFT directly via this phone.

In addition to this, a prominent exchanged-linked update lined up for Solana. Singapore-based exchange Crypto.com enabled the on-chain staking for SOL on Monday. As per Solana Explorer, nearly 392.3 million SOL are part of the active stake.

Various Web3 protocols launched and facilitated integrations between Solana and other blockchain ecosystems. To highlight, Injective and Eclipse aided the integration of Solana’s Sea Level Virtual Machine (SVM) with Cosmos and Polygon ecosystems respectively.

All the above upgrades and launches are pinned on the list of reasons that cause the altcoin’s price surge. Outperforming SOL, other altcoins recorded notable 24H price gains —Render Token (RNDR) at 16.84%, Conflux (CFX) at 13.86%, Stacks (STX) at 11.23%, and Injective (INJ) at 10.76%.

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