Solana, like many Proof-of-Stake (PoS) cryptocurrencies, relies on a decentralized network of validators that secure the network by staking their SOL coins. In return for staking, validators earn rewards.
However, as the price of Solana has recently started to boost, there has been a noticeable decline in staked SOL. This suggests that some validators are choosing to brief their coins, potentially to take advantage of the price boost and reserve some early profits.
Solana’s market cap and price are skyrocketing
Meanwhile, Solana had a great day on Tuesday, rising 17% and increasing its market capitalization by over $11 billion, which now stands at over $70 billion. With these impressive results, Solana overtook industry giants such as Bitcoin (BTC) and Ethereum (ETH), which remained mired in their own price volatility. With a market capitalization currently standing at an impressive $80.7 billion, Solana’s explosive growth has caught the attention of the cryptocurrency world.
This unwaged activity has attracted the attention of analysts, with the unwaged amount reaching a significant SOL 5 million last week. With Solana currently trading at around $157 per coin, this means approximately $780 million worth of tokens are re-entering the market. The inflow of such a huge volume in a brief time could lead to a transient situation of oversupply on the stock exchanges.
SOL price action in the last 24 hours. Source: Coingecko
Pullback or breakout?
The potential impact of unquoted SOL on price is a matter of debate. Without a corresponding boost in demand to absorb this additional supply, there is a risk of an initial price correction in the coming days. This could cause Solana to pull back from its current level and stabilize around $150 before potentially returning to an upward path towards $200.
Total crypto market cap currently at $2.3 trillion. Chart: TradingView
Goal $200
The coming days will be crucial for Solana. Bulls need to maintain sturdy buying pressure to absorb unstakeable coins and push the price above the $160 resistance zone. If successful, this could push Solana towards its $200 target. However, failure to do so, coupled with large-scale selling of unlisted SOLs, could trigger a downward correction to $150.
Solana 2024 breakpoint
In another development, Solana 2024 breakpoint will be held in Singapore on September 20-21. This event will give participants full access to the heart of the Solana community, including insightful conversations and exclusive events.
Special subsidized rates are available for developers, creators, artists and students, allowing a variety of people to participate in this transformative event. Located just a 15-minute drive from Amsterdam city center, the Solana campus offers a variety of stages for insightful conversations, networking areas for networking, and free transportation for participants’ convenience.
Solana Breakpoint is an significant event for the Solana community, providing developers, validators and other ecosystem participants with a platform to discuss the latest developments, share insights and showcase their achievements. The annual conference highlights the network’s potential and its role in the broader blockchain space, with a focus on performance, reliability and innovation.
Featured image from Pexels, chart from TradingView
