SOL value nears $200 after FTX’s Solana-enabled NFT market goes dwell

Solana (SOL) bulls have largely ignored its overvaluation dangers because the blockchain asset goes after one other milestone value degree.

The SOL/USD trade price nearly reached $200 on Sept. 7 as buyers continued to deal with Solana as a long-term competitor to Ethereum, the world’s main sensible contracts platform.

Extra bullish proof got here on Monday after Sam Bankman-Fried (SBF), the CEO of crypto derivatives platform FTX, introduced Solana’s integration into their upcoming nonfungible token (NFT) market.

On Sept. 6, SBF revealed that the brand new market would allow NFT creators and homeowners to commerce their digital arts cross-chain utilizing Solana and Ethereum. The platform would additionally make it attainable to commerce NFT collections from rivaling market OpenSea on FTX.

The NFT market went dwell on Monday and is hosted by FTX.US, a United States-regulated cryptocurrency trade backed by FTX. That permits U.S. customers to mint and commerce NFTs by way of FTX.

NFT increase behind Solana rally

NFTs exist on blockchains, the general public ledger expertise that retains observe of who owns the digital belongings. Due to this fact, performing duties equivalent to minting an NFT token or processing a digital asset transactions entail a charge.

Most NFT-related transactions happen on Ethereum; it occurs even because the community points endure from larger congestion and inflated fuel charges points. Information fetched by EtherScan exhibits that Ethereum’s fuel charges reached their highest ranges since Could final week.

“As NFT exercise instructions ecosystem consideration, fuel costs have risen to every day ranges that value out many retail merchants,” Luke Posey, a researcher at blockchain analytics agency Glassnode, wrote in a notice Wednesday. 

Solana’s public base-layer blockchain protocol proposes to cast off Ethereum’s efficiency bottlenecks. As well as, its lowered fuel charges prospects have made it an rising participant within the NFT trade, backed by the launch of devoted digital collectibles marketplaces equivalent to Solanart, DigitalEyes, and its integration into music streaming platform Audius.

Main gamers within the crypto area have acknowledged Solana’s potential in opposition to Ethereum. In June, SBF-backed Alameda Analysis led a $314 million funding spherical for Solana backed by enterprise capital agency Andreessen Horowitz, Polychain Capital and CoinShares.

SOL to $500?

Greg Waisman, co-founder and COO at cost community Mercuryo envisioned exponential development for the Solana ecosystem based mostly on its rising adoption among the many decentralized finance (DeFi) and NFT area.

He  Solana’s increase seems just like Ethereum and Binance Sensible Chain, including that it could increase SOL/USD trade price to as excessive as $500 within the second half of 2021. Excerpts from his assertion:

“Solana is probably a $500 digital coin, and the value development of Solana in current instances factors to the capability of the token to obtain sufficient increase to hit this mark earlier than the top of H2 2021.”

On the flip aspect, analysts at JPMorgan & Chase warned shoppers about overvaluation dangers within the altcoin and NFT area, stating that the current rally is “extra more likely to be a mirrored image of froth and retail investor ‘mania’ relatively than a mirrored image of a structural uptrend.”

Associated: JPMorgan sounds alarm over ‘frothy’ crypto markets after August increase

On Tuesday, SOL/USD’s quarter-to-date returns reached somewhat over 450% because it established its all-time excessive at $196.78. Since then, the pair has already pulled again as merchants take income. 

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Cointelegraph.com. Each funding and buying and selling transfer includes threat, it is best to conduct your personal analysis when making a choice.