Solana’s Ignition Has Driven Investors Crazy

Highlights:

Solana is a fast, secure and censorship-resistant blockchain built for global adoption and payment system.

It claims to be the fastest blockchain in the world and the fastest growing ecosystem in crypto, with hundreds of projects under operation.

Investors have been driving new all-time highs each day with the most recent one being $128 due to Solana’s Ignition .

What’s sponsoring its rally?

Solana has been rallying on unprecedented levels while other altcoins such as XRP, Ethereum, Dogecoin and Cardano have become laggards. The coin has given a massive rally on the upside, giving its investors 83% returns in a week, 310% returns in a week and 10450% year-to-date. Investors have gained big holding this altcoin throughout this year as its price surged from $1.90 to $129 in just 9 months.

This immense rally has also greatly expanded Solana’s market capitalization, pushing it into the list of top ten cryptocurrencies. Solana has become the eighth largest cryptocurrency in the world as of August 31, 2021. The coin left behind Polkadot and USD coin as Solana hit a new all-time high of $129 intraday. Now the coin is behind Bitcoin ($856 billion), Ethereum ($357 billion), Binance coin ($70 billion), Cardano ($69 billion), Tether ($64 billion), XRP ($52 billion) and Dogecoin ($40 billion) in accordance with the market capitalization.

Here’s a snapshot of Solana’s chart for the past 12 months:

solana ignition
Source: Tradingview

Why is Solana rising?

Solana has also been called as the replacement for Ethereum nowadays. The main cause of this rally is the mysterious new update announced by the developers of Solana. Recently, they announced that Solana would be going through a major update in the form of an ‘ignition’. This further boosted investors’ sentiments and strengthened Solana’s position as a replacement of Ethereum.

Solana’s prices rose to a record high of $129. This was following investors’ speculation as to the nature and effect of this mysterious update. The coin is up 12.83% today itself and it is showing no signs of retracement.

What’s Solana’s Ignition?

Solana announced the launch of the ignition event through its twitter account. They started a countdown, listing the number of days left until the ignition. It seems as though something big is in play that will poise Solana’s future and support its bullish frenzy. As its price rises constantly, many investors will buy into it due to FOMO and drive the prices ridiculously higher. Solana network has not made any clear revelations about the details of the ignition. Yet, investors’ optimism has gone through the roof. The coin has outpaced each and every altcoin in the crypto space. Solana is likely to continue its phenomenal rally, with more power after the investors learn the details of Solana’s ignition.

Investors also believe that this update will be quite similar to the updates of Ethereum wherein several coins are burned to reduce the supply. The word ‘Ignition’ supports investor’s theory about the likelihood of a burn on a global basis. If this happens, the circulating supply will take a hit, making the existing coins and their investments highly valuable.

Some analysts believe that Solana may rise higher in the market capitalization list in the next decade and possibly cross Ethereum for good. All speculations aside, investors look forward to seeing the details of Solana’s Ignition upgrade and assess its worth in real-time.