Solana’s new decentralized exchange helps SOL rocket to a record high

Solana SOL Wormhole Mango Markets
image from solana.com
  • Solana’s SOL rocketed 60% in 4 days.
  • Mango Markets decentralized exchange behind the recent rally.
  • Wormhole 2.0 cross-chain bridge signified growing Solana adaoption.
  • Technicals on the SOL daily chart.

YEREVAN (CoinChapter.com) – Solana smart contract blockchain’s native token SOL rallied almost 60 percent since August 13. It went from $40.7 low on Friday to an all-time high of $64.8 in the Asian-Pacific session Monday. However, the bullish price action subsided in the following hours bringing the value to $61.4 ahead of the London session.

The SOL rally ignited on the news of Mango Markets’ fair token launch on Friday, the first DEX (decentralized exchange) built atop Solana. The MNGO token sale itself commenced on August 11 and took 48 hours. The fair token launch raised a reported $70 million.

Mango Markets DEX

Mango Markets will focus on cross-margin trading and deliver on-chain governance with the Mango token. In addition, the MNGO holders (staking 0.01% or more) have the authority to propose protocol upgrades and determine the platform’s future direction.

The cross-margin trading protocol first emerged during Solana’s Hackathon dApp competition in late May. It supports Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Serum(SRM). The latter’s on-chain order book provided lending and borrowing capabilities for Mango Markets.

Also read: SOL soars 19.37% after Solana-powered exchange raises $7.7M in seed fund.

Growing Solana adoption

A new connection portal launched on August 9 atop Solana blockchain, dubbed as Wormhole 2.0 protocol, is an interchain portal between Solana, Terra, Ethereum, and Binance Smart Chain ecosystems.

The developers assert that Wormhole will allow assets, tokens, NFTs (non-fungible tokens), and price data to communicate between blockchains. Thus, it represents a bi-directional cross-chain bridge. Solana describes the bridge as “leaderless.”

All guardians perform the same computation upon observing an on-chain event, and sign a so-called Validator Action Approval (VAA)

reads the describtion.

Anatoly Yakovenko, the chief executive of Solana Labs, commented on Wormhole’s significance for the future of interoperable blockchain technologies.

Trustless bridges like Wormhole represent the forefront of interoperable blockchain infrastructure. [They] can create new corridors for information to flow between blockchains, and unlock billions of liquidity and new value across all asset classes,

asserted the CEO.

Also read: Bitcoin (BTC) could top $100,000 early next year, supported by bullish indicators.

Moreover, on August 13, the blockchain has announced the first annual Solana conference, dubbed “Breakpoint.” It will welcome the company leaders, developers, builders, and other Solana enthusiasts in Lisbon, Portugal, November 7-10.

Also read: Age of Cardano is here, says crypto analyst, as ADA speeds towards its record high

Meanwhile, SOL…

…initiated its confident rally after the Wormhole 2.0 launch on August 9. Further good news came with the Mango Markets kick-off and fueled the bullish price action further. SOL topped off at a new all-time high of $64.8 in the Asian-Pacific session and stabilized with a slight correction hours later.

The digital asset powered through a significant resistance line at $44.7 on Sunday, for the first time in 3 months. SOL’s relative strength index (RSI: momentum indicator, purple graph) stood at 85. An RSI higher than 70 is a red flag for traders as the cryptocurrency steps into the overbought territory.

Solana (SOL) rallied 60 percent in 4 days, reaching a new all-time high. Source: SOLUSD on TradingView.com
Solana (SOL) rallied 60 percent in 4 days, reaching a new all-time high. Source: SOLUSD on TradingView.com

The high RSI might result in a downward correction in the upcoming sessions. However, the violent uptrend had merit. Solana blockchain’s broadening adoption might bring more gains to its supporters and users in the future. Furthermore, the Mango Markets DEX and the Wormhole 2.0 protocol could strengthen Solana’s position in the DeFi sector.

Also read: Can Cosmos’s ATOM rally up to the $21-23 price range? This technical setup says yes.

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