Here is why Solana price has been rallying over the past week
The Solana (SOL) token had spent the better part of January nose-diving as its network faced major network congestion issues. However, after tackling the last congestion issue, the price of SOL has been rising in the last six days.
SOL is today trading at around $108.86 up 3.26% after registering a 14.68% yesterday.
Today’s trading range is a high of $112.98 and a low of $104.50.
Besides there being no more congestion issues, what is really making the SOL coin rally at such a pace? Let’s see what the hype is all about.
Why Solana’s price is skyrocketing?
Before delving into what is behind the current Solana bullish trend, it is important to keep in mind that Solana is a decentralized open-source project that mainly uses blockchain technology to provide solutions for decentralized finance (DeFi).
The current Solana price rally is highly attributed to the recent listing of two low cap Solana-Based projects’ tokens on Coinbase, a leading crypto exchange based in the US.
According to an earlier report by CoinDesk, Coinbase has already started accepting inbound transfers of the two Solana ecosystem tokens, Orca (ORCA) and Bonfida (FIDA).
Coindesk’s report was confirmed after Coinbase made the revelation through a Twitter post on January 31st.
Inbound transfers for Bonfida (FIDA) and Orca (ORCA) are now available on @Coinbase and @CoinbaseExch in the regions where trading is supported. Trading is not enabled at this time. Trading will begin on or after 9AM PT on Tuesday, February 1, if liquidity conditions are met. pic.twitter.com/0dtwx0CcgD
— Coinbase Assets (@CoinbaseAssets) January 31, 2022
Immediately after the news, Solana’s price jumped 17% regaining the $100 price level; and it has continued to rise from then. On the other hand, the price of the FIDA token nose-dived while the price of the ORCA token skyrocketed but later pulled back.
Coinbase CEO, Brian Armstrong, had earlier tweeted about plans to list every asset where possible; a mission that is a bold step to go forward although it might demystify the effect of token listing on price movements in the future.
The US-based crypto exchange has also made it clear that its plan is to enable the withdrawal of Solana Program Library (SPL) tokens.