Altcoin took eighth place in the list of the largest cryptocurrencies in terms of capitalization. Experts predicted whether the asset will be able to continue growing in the near term.
Solana token price for the last month has increased by more than three times. On August 30, the altcoin price renewed its all-time high at $ 101. Solana capitalization increased by 226% and exceeded $ 29.4 billion, according to CoinGecko.
The token took the eighth place in the list of the largest cryptocurrencies in terms of capitalization.
The latest wave of Solana growth began on August 27 following the announcement of the digital coin developers.
T-minus 3…
2…
1…https://t.co/QKtI2gJulh, coming August 31. pic.twitter.com/UTiWbf2T7n
— Solana (@solana) August 27, 2021
On the project’s Twitter page, there was a message about the update, which will take place on August 31 and will introduce a new feature in the Solana blockchain called “Ignition”. It is speculated that the update could introduce a token burn mechanism.
Burning tokens is the destruction of a certain number of tokens to reduce their number in circulation.
This method is used to combat inflation and increase the value of cryptocurrencies.
All coin burning operations are recorded on the blockchain as a transaction, so anyone can verify that the coins have been destroyed.
Growth reasons
In August, the Solana token managed to overtake Ethereum in profitability, which grew by 37% over the month, said Vladimir Smetanin, CEO of the financial company Newcent.
In his opinion, the Solana token was able to become more interesting to investors in August due to the high transaction speed and low fees.
The rapid growth of Solana over the past four weeks was caused by the attraction of the project in financing in the amount of $ 314 million, the expert said.
This makes Solana an excellent candidate to host a wave of decentralized finance (DeFi) applications, Smetanin is sure.
“There is great interest in the project, and thanks to the rise in price, it is now in the forefront in terms of investor interest,” the expert added.
Further perspectives
The Solana rate in the near future will depend on the “Ignition” update, which should be released on August 31, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service.
“If the expectations of the participants are justified, then, I believe, the rate may grow still, but it is unlikely to be significant in the short term, since the news has already been played out,” the expert explained.
If the news does not meet the expectations of investors, then the price of the token may fall significantly, Soshnikov predicted. According to him, in the next two weeks there are no factors for the continued growth of altcoin.
“It’s too late to enter Solana right now.
It is necessary either to wait for the correction (and it will come sooner or later), or to enter in small parts every week in order to evenly distribute the risks, “Soshnikov advised.
