Solana (SOL) hits $100 for the first time after the revelation of the mysterious "Ignition" event

SOL token hits $100

SOL, the native token of Solana, has recorded a new high above $100. The Solana project has entered the top 8 largest cryptocurrencies with a capitalization of about $29.3 billion.

According to CoinMarketCap, SOL is trading at $101 at the time of publication. This means that its price has risen by 9.4% in the last 24 hours.

How can we explain this rise from a fundamental perspective? The rise could be explained in part by the revelation of an event dubbed “Ignition” through the release of a video that shows a flaming violet light. However, this mysterious news may not be associated with a burn.

The Solana protocol burns a portion of the transaction fees it collects in order to limit SOL’s supply. However, Solana also creates new tokens based on a “deflationary schedule”. If Ignition is a token burning event, it should not merit a dedicated page on Solana’s official website. Indeed, previous token burns have not had this type of communication.

Moreover, the Ignition teaser is accompanied by a caption that reads: “The sky is the limit, what will you throw? “with a period from August 31 to October 8 highlighting that it could be more of an event for decentralized application developers (dApps) or non-fungible token creators (NFTs), and less of a token burning episode.

Interest in NFT projects on Solana

The dramatic rise in SOL also follows the success of several non-fungible token (NFT) projects created on the Solana network such as Bold Badgers or Degenerate Ape Academy. At the launch of the latter, a collection of 10,000 unique monkey images was sold in just 8 minutes, with the total volume even reaching nearly 96,000 SOLs or about $6 million. The minimum price to acquire a degenerate ape is a minimum of 56 SOL or about 5600 dollars.

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The team behind Degenerate Ape Academy revealed that they had been overwhelmed by the community’s interest:

“It was exponentially bigger than we thought.”

Read more on the same topic : Solana ecosystem (SOL) integrates Chainlink’s price oracles

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About the author: Florent David

Solana (SOL) hits $100 for the first time after the revelation of the mysterious "Ignition" event

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Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFT).
All articles by Florent David.