By Shelly Melancon (Switzerland)
Solana’s governance token spiked by 18% within the last 24 hours following the listing of two tokens of two Solana-built projects. The leading crypto exchange across North America had earlier announced the listing of Orca and Bonafida’s native tokens on January 31.
A First By Coinbase
Following this listing, it is the first time Coinbase will list tokens of non-Ethereum built projects. It usually lists the tokens of Ethereum-built projects or governance tokens of top Ethereum rivals such as Solana and avalanche. Hence, the SOL price started the day at $105.9 despite trading at less than $89 24 hours earlier.
SOL price was $174 as of January 1, 2022, but the overall downtrend in the crypto market affected SOL’s price such that it was trading at $83 seven days ago. However, towards the end of last week, the SOL price fluctuated narrowly around the $89 support range, with buyers making their entry moves.
SOL/USDT 1-hour chart. Source: TradingView
However, the $100 price level remained its next crucial resistance until today. Furthermore, the RSI reading of 71 is in the overbought region and suggests that a temporary price correction might happen soon. The RSI is a function of price change with time.
Another Reason For The SOL Uptrend
Another reason for SOL’s bullishness is the completion of a Series A funding round by phantom (Solana’s most popular blockchain wallet). Besides raising nearly $110m in this funding round, Phantom also announced the launch of its ios app, which would be an added boost to the Solana community.
Also read:In the meantime, ORCA (the native token of one of the newly listed Solana-built projects, Orca) remained bullish for more than 24 hours. While it encountered a temporary price correction at the $3.60 level on January 31, it surged by nearly 37% to trade at over $4 during the Asian trading session.
However, the second-listed token (FIDA) didn’t match ORCA’s price gains; it only spiked by 0.8% in the last 24 hours, according to Coingecko data. Before the Coinbase listing, FIDA was trading at $2, but a few hours after the Coinbase announcement, it surged to more than $2.78. However, it has shed about $0.20 to now trade at $2.59 as of this writing.
Solana To Introduce Transaction Fees To Solve Network Congestion
It is no longer news that the Solana network has been heavily congested in the last couple of months. Hence, the Solana labs team suggests transaction fees to solve this issue. The team also claims that this fee will help facilitate important transactions.
If this proposal is adopted and becomes a reality, Solana would join other layer blockchains that charge transaction fees to prioritize transactions. Part of the proposal states that a single address with multiple transactions will pay more fees than addresses with single transactions.
Furthermore, these transaction charges will enable Solana users to include a tip for their transactions to be processed faster. Solana co-founder Anatoly Yakovenko suggests that some of these fees will be burned to maintain/enhance the value of the SOL token.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.