Solana (SOL), currently, the world’s 13th largest cryptocurrency has rebounded strongly after the recent crypto collapse. The cryptocurrency surged by more than 55% during the last 36 hours or so which is higher than either Bitcoin or Ethereum who managed 19% and 19.5% respectively.
The digital currency had a miserable price drop earlier on Monday as the index dropped around 42% from a high of around $35 to as low as $20 at one point. However, as the market rebounded yesterday, many of the altcoins performed poorly than Bitcoin and Ethereum, the main trend setters of the sector. Cardano (ADA), Binance Coin (BNB), Dogecoin (DGC), Polkadot (DOT), Ripple (XRP), etc all recovered much more slowly than Solana despite being higher on the market capitalization chart. However, near press time, they are closing in on the gap.
How did a smaller cryptocurrency recover so well even when the altcoin market had no encouraging signs around?
Solana is a Decentralized Finance (DeFi) platform designed to aid in the creation of the decentralized applications or dApps. Lately several new projects have been launched on the Solana platform that have become a success, which has in turn appreciated the valuation of the blockchain platform. One of these emerging outlets is Pyth.
Pyth recently announced that its platform had a new partnership with LMAX Digital, an institutional exchange services provider.
According to a Tweet from Pyth’s official Twitter handle:
“We are thrilled to announce @LMAX, the leading independent operator of institutional execution venues for FX and cryptocurrency trading, as the first institutional exchange joining @PythNetwork as a data provider!”
Since Pyth is based on the Solana network, the SOL cryptocurrency recovered heavily on the back of this positive news. The DeFi platform has also raised more than $26 million in direct SOL token sales and entered the top 20 cryptocurrencies for the first time last month.
Despite the latest upticks and partnerships for Solana, the way ahead is difficult for the cryptocurrency to continue on with its explosive trajectory. Right now, the DeFi sector is cooling down with the latest crypto price tanks. The DeFi’s main premise was to leverage cryptocurrency as collateral for financing and other innovative approaches. However as the price becomes unreliably bearish, the activity on the DeFi platforms will take a hit.
Also, cryptocurrencies enter the top 20 list every now and then only to fade away into the rankings later on. There are several dozen examples of such coins. So, Solana has its work cut out for it.
Image Source: Solana
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