Solana (SOL) the native token on the popular proof-of-stake (PoS) blockchain, has risen to become the sixth-largest cryptocurrency by market value over the past week.
On Thursday, the coin jumped two spots in the rankings, passing Ripple (XRP) and Cardano (ADA) while avoiding a broader weakness in the crypto market.
SOL gained about 17% in the previous seven days and is currently trading above $120, its highest level since late November. In the last 24 hours, the token also gained 0.4 percent, while the broader crypto market fell around 5%.
The token rose in the second half of March, rebounding from a seven-month low in the middle of the month. It had earlier this week surpassed Terra (LUNA) to reach the eighth slot in the top ten cryptocurrencies.
SOL sees bullish indicators as the mid-March rally extends
SOL has shown a bullish morningstar pattern for March, indicating that it was ready to recover further after losses earlier in the month, according to popular Twitter analyst @SmartContracter. The token has gained nearly 33% from its March lows around $81.
SOL’s Bitcoin (BTC) pair also displayed a “clear” ABC pattern, indicating that the token was primed for more gains, according to @SmartContracter.
Institutional interest, video game expectations boost Solana
SOL received a deluge of positive news through March. Last week, digital asset manager CoinShares, and the world no 3 cryptocurrency exchange FTX jointly launched an exchange-traded product that allows users to earn SOL staking rewards without having to buy the token directly. The program is aimed primarily at institutional investors and is expected to draw a significant amount of capital to SOL.
The token makes up nearly a quarter of the weightage in a recently formed smart contracts fund by digital assets manager Grayscale. Large-scale trading by investment houses is credited with spurring a large crypto rally in 2021 and is usually a bullish indicator.
Krafton, the developer of the immensely famous PUBG videogame teamed up with Solana Labs last week to develop blockchain games, bringing further attention to the token.
The proposed switch to a PoS strategy by Ethereum has sparked interest in other projects in the space. SOL is now the second-largest player in the area after recent gains.