- Solana has enjoyed a terrific week of trading, with the price of SOL gaining over 14%.
- Analysts believe the counter-move from Solana comes on the back of major technological advances within the ecosystem.
- Solana is introducing Blockchain links (blinks) and ZK Compression, two separate changes set to improve adoption and developer access.
- Additionally, financial institution VanEck has publicly filed for a spot Solana ETF, causing a stir among the community.
The crypto market has steadied after a rough fortnight, with one project in particular leading the charge. Among steady weekly gains, the popular DeFi ecosystem Solana has bucked the trend to post a price rise of 14%.
The move brings SOL close to US $150 (AU $224) as the digital currency outperformed several major competitors, including Ether and BTC.
Related: Crypto ETF Landscape Heats Up: Australian Bitcoin ETF Buys the Dip, 21Shares Pursues US Solana Listing
Two Major Technical Upgrades Coming to Solana
Though crypto can sometimes be a bit of an enigma, Solana’s positive week of trading isn’t a mystery – some very significant catalysts are pushing SOL upward.
Last week, the DeFi project announced the introduction of Blockchain Links (or Blinks) on the Solana network. This new technology has the power to potentially introduce SOL to an entire new demographic of users.
Simply, Blinks can convert actions (like blockchain transactions) into a social media-friendly form, such as a QR code or link. This allows users to send tokens over the network with the click of a button.
Another technological feat coming from the Solana camp is the addition of ZK Compression technology. Although the technical jargon is a little confusing, generally, ZK Compression offers an impressive improvement to Solana’s scalability.
It allows developers to access the protocol for a 5000x reduction in price – which is quite enticing considering Solana is already renowned for being relatively cheap.
Looking away from Solana’s ecosystem, external factors have been at play in the coin’s impressive week too. As the ETF war heats up, financial institutions are jostling to be first to market. Although most of the attention is being paid to Ether ETFs – set to go live in the coming weeks – some companies have their eyes on the future.
Related: BlackRock: BTC a Hedge Against Monetary Risk and Geopolitical Uncertainty
Prominent financial manager VanEck took it one step further, officially applying for a spot Solana ETF last week…even though SOL is nowhere close to being approved for TradFi trading.
Some pundits are skeptical that VanEck’s play is more of a publicity stunt than a genuine attempt to enter the Solana ecosystem. But it’s spurred another competitor – 21Shares – to follow suit, and has pushed the DeFi protocol into the news cycle once again.
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