Solana’s day has been very important.
The market value of the ninth-largest cryptocurrency has grown by almost 7% in the past day.
On Tuesday morning, the price of SOL, Solana’s own currency, went up from $35.22 to $38.87. As of press time, it had gone back up to $38.27.
Solana is a fast proof-of-stake (PoS) blockchain network that lets you do a lot of the same things as Ethereum, like make decentralized finance (DeFi) apps and tokens that can’t be traded with other tokens (NFTs).
A big rise in the number of trades is supporting the current bullish trend. CoinMarketCap said that in the last 24 hours, Binance, FTX, Coinbase, and Kucoin all went up by 93.74%. The most common trading pair is the U.S. dollar or stablecoins that are like it.
Taking an even bigger step back, Solana’s token has grown by a shocking 15% in the past week. Last Tuesday, each share of SOL was worth about $33.
Traders who had short positions in SOL were also wiped out in the last twenty-four hours. There has been a total of $4.09 million in liquidations, and more than 82% of those were short positions. CoinGlass says that most of these negative liquidations took place on the Binance exchange.
Before they can sell an asset, short sellers must first borrow it from a broker or exchange. Then, they sell the item on the open market, thinking that it will lose value. If the value of the asset goes down, the trader will buy it back at a lower price, pay back the loan (which was made in the asset and not in fiat currency), and keep the difference as profit.
But if the market goes against the trader, they could lose money if they buy back an item whose value has gone up so they can pay back the loan.
Why does Solana work so hard?
Most likely, the change in the price of SOL is due to an increase in Solana-based NFT volume and the expected merger of Solana with the well-known Internet-of-things-based crypto project Helium Network.
Nansen found out that on September 12, more than a million Solana NFT transactions took place across markets and mints. This was the most transactions ever for Solana NFT.
Data from CryptoSlam shows that this activity seems to be driven by the y00ts, Solswipe, and ABC (abracadabra) NFT collections.
Along with a rise in activities related to NFTs, Helium plans to move all of its business to the Solana blockchain.
Helium is a peer-to-peer, crypto-powered network of many physical “hotspots” that tries to make internet access better in areas with poor coverage. HNT tokens are given to people who host and run a hotspot.
As described in Helium Improvement Proposal (HIP) 70, Helium would move from its own blockchain to Solana. It would take the HNT coin, governance processes, and mining incentives with it.
It would also give the Helium community more access to Solana’s DeFi and NFT environment.