Key Takeaways
- Price of Solana (SOL) crosses $100 to reach a record high
- Speculations over the to-be launched Igntion update gets the bulls behind SOL
- The crypto community is unable to decide if Ignition is a token burning event or another network update
YEREVAN (CoinChapter.com) — Solana decentralized ledger’s in-house token SOL touched an all-time high of $103 on Monday after the demand for the coin increased immensely. With a market cap crossing 29.51 billion, SOL stays firm as the 8th most popular cryptocurrency.
On its way to the $100 mark, SOL outperformed Polkadot (DOT), Litecoin (LTC), Uniswap (UNI), Bitcoin Cash (BCH), and Chainlink (LINK). As a result, SOL is now traded at a higher value than the above-mentioned popular altcoins.
Still staying firm on the 7th position is Dogecoin (DOGE), with a market cap of $36.941. As SOL continues to grow, it could potentially overtake the meme coin next.
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What happened?
Since the beginning of 2021, the price of Solana has increased multifold. On 1 January, per SOL token sold at $1.5. In less than a year, the price has risen by over 4000%. In August 2021 alone, the cost of SOL spiked by more than 200%.
Last week Solana took to Twitter to introduce “Ignition.” While the post did not clarify any details, it did inform that Ignition will launch on August 31.
Denied clarity, the community began guessing what the launch would be about. Given the name of the to-be-launched update and the flame in the video shared, it was not long before people pointed out what
seemed rather obvious.
According to followers, Solana was preparing to burn SOL tokens.
The news of the possible SOL burning had bulls rallying behind the token, bringing the prices to a record high.
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Is Ignition a burning event?
With some followers of the fast-growing token choosing to go with the theory that a large burn might take place tomorrow, these speculations may prove to be wrong.
While not disputing the speculations, one cannot help but ask, how is this supposed burning event special than the previous ones that it needs an element of suspense? Also, why would Solana choose to dedicate an entire page on the main website to the announcement when it did not do so before for other burning events?
On May 23rd, Solana burned 11,365,067 (SOL) tokens in one day without creating much noise about it.
Also, the website announces a 9-day event, spamming from August 31 to September 8. It is unlikely that Solana would dedicate over a week to a burning event. Perhaps there is something else in store for the community.
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Impressive numbers on the Solana network
Over the past few months, Solana has received a lot of traction owing to its impressive performance.
With over 15 billion transactions, its performance has been better than market giants like Ethereum and Binance.
With an average fee per transaction as low as $0.0015, compared to Ethereum’s $15, and with transaction latency of just 0.4 seconds, it has grown to host several applications on its platform.
Solana currently hosts a variety of Defi applications, NFT projects, and Web3 Applications, among others. Owing to its impressive numbers and low gas fees, Raydium, the decentralized exchange, decided to launch on the network.
Will Solana hold?
With the industry talking about the network often recently, Solana may have benefited from the FOMO factor, as people tried to ensure they were a part of the next big thing.
However, the record high may also result in massive sell-offs by short-term investors, bringing the prices slightly down.
Currently, Solana is trading at the $100 mark. However, we will have to see if it will escape a major dip in the days to come.
In the meantime, it will be clear tomorrow what “Ignition” is about.
