/Why is Solana's price going up so much?
Why is Solana's price going up so much?

Why is Solana's price going up so much?

Integration with OpenSea, the world’s largest non-fungible token (NFT) market by market volume, has given Solana (SOL) a boost, which has maintained its upward trend in the last two weeks.

Solana (SOL) has continued to improve its price, despite the fact that in the last 30 days the sales volume in Solana’s NFT markets has shrunk by 13%. Its price for March 30 (01:41 pm New York time) was US $123 with a gain of 11% in the last 24 hours.

This is the best level of the token since February 11, which has allowed gains of over 50%. So far this year though, SOL/USD has lost 30% and there is still a risk of a pullback. The token has tested its 200-day moving average around the $120 barrier.

Analysts indicate that the 200 day EMA of SOL coincided with the 0.236 Fibonacci line seen on the chart Fibonacci retracement, which goes from the high price of $266 to the low of $75. This additional layer of sell-off risk of about $120 is believed to be difficult to break.

Daily prices of SOL. Source: TradingView.

New transaction record for SOL NFTs

The integration of NFTs de Solana on the OpenSea market on March 29 likely boosted the price of the token. But the rise also coincides with a rally in Solana’s own NFT markets. That same day they registered a sales record in terms of volume and number of transactions, according to data from Dune Analytics.

A total of more than 57,000 transactions were executed through Solana’s platforms. While its net worth was around 136,000 SOL, equivalent to 15.2 million dollars, taking its price as of March 30 as a reference. This is the largest number of transactions in one day recorded from Solana’s NFT ecosystem to date.

Magic Eden, one of the NFT markets in Solana, was the one with the highest percentage of transactions recorded. In total, it processed 80% of all transactions reported on March 29. This NFT market recently raised $27 million in a Series A funding round led by Paradigm.

Since its launch in October of last year, Magic Eden has managed to outperform all other Solana markets. However, and in general, the downward trend observed in Solana’s NFT sales volume continues.

Solana NFT daily transaction volume.

More transactions but less sales volume

These NFT markets have performed less in sales volume, although they have seen tremendous growth in their operations . For example, owner-to-owner NFT sales volume has fallen by more than 13% ($147.41 million) in the last 30 days, according to data from CryptoSlam.

In February the loss was 30% compared to the US$ 202.19 million sold in January. But these falls are not exclusive to Solana. Philip Gunwhy, sports market partner at NFT Blockasset, indicated that something similar is happening in other networks.

According to the expert, it seems that the increase in regulations of cryptocurrencies and other digital assets in the United States and China has affected these markets. The demand for NFTs has generally decreased with the approval of trading regulations for these assets.

Solana sales volume.

Other blockchains have also been affected

Lo The same is happening with Ethereum ( ETH ), which hosts just over 90% of all NFT volumes. In the last 30 days, the world’s leading smart contract platform has seen a close to 38% drop in sales volumes. Compared to Solana it is almost three times more.

Similarly, other important projects based on blockchain technology such as Avalanche ( AVAX ), Ronin and Flow have seen declines in their NFT sales volumes, ranging from 30% to 60% in their NFT sales volume.

According to Gunwhyn it is clear that “the level of sales is proportional to the number of users, which is currently declining in most markets”. He added that “the NFT market correlates with investor sentiment more than with fundamental factors, this is a trend that we cannot ignore at the moment”.

This partly explains why the price of Solana is rising so much compared to other cryptocurrencies. The NFT market appears to be reaching an expected level of correction and is evidently adjusting to government regulations.

How to invest in Solana with a regulated broker?

For those who are thinking of diversifying their current portfolio and trying out a decentralized application project, which is revolutionizing the blockchain space, Solana is an excellent investment proposition.

If you want to buy Solana (SOL), the option recommended by El País Financiero is the broker eToro.com, a platform investment used by more than 20 million users, based in London and authorized by the CySEC and the FCA (the UK regulator).

Legal and Risk Notice: eToro is a platform that offers products with and without CFDs. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Crypto assets are highly volatile and unregulated investment products. They do not have EU investor protection. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

In Spain, eToro is registered with the National Market Commission de Valores

with registration number 2534 (here is your registration). If you want to know more about this broker, you have an eToro review at your disposal.

When it comes to buying cryptocurrencies like Solana, eToro offers us great advantages over its competitors: It is one of the few regulated brokers that allows us to invest in real cryptocurrencies and not in derivative products (such as CFDs, which have more risks and much higher commissions).

Another great advantage that This broker offers is that allows you to add funds to the account instantly by credit card, Paypal or bank transfer (among others). In a few minutes you can deposit funds and buy Solana or other cryptocurrencies from its extensive catalog.

> Create your account for free at eToro.com to buy Solana

Legal and Risk Notice: eToro is a platform that offers products with and without CFDs. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Crypto assets are highly volatile and unregulated investment products. They do not have EU investor protection. Indicative prices for illustrative purposes. Past performance is not an indication of future results. The trading history presented is less than 5 full years and may not be sufficient as a basis for investment decision. eToro USA LLC does not offer CFDs and makes no representations and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner using specific information not publicly available about eToro. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

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