3 reasons why Solana (SOL) price is up this week

Solana (SOL) rate experienced a 20% gain in between Sept. 28 and Oct. 6, but is the rally a tandem move with Bitcoin (BTC) cost or is it being driven by other elements. Prior to the rate breakout, or maybe, its recovery, SOL faced a turbulent duration after a U.S. court authorized the sale of $1.3 billion in SOL from the bankrupt exchange FTX.Solana day-to-day price index, USD. Source: TradingViewThe insolvency court has taken procedures to ensure that the liquidation of FTX assets will not end up being a concern for the crypto market, requiring the sale to occur through an investment consultant in weekly batches in accordance with pre-established rules.Following the preliminary effect, which drove Solanas price to a 2-month low of $17.34 on Sept. 11, some degree of confidence amongst bulls became it re-established the $20 support on Sept. 29. This motion corresponded with a successful upgrade to version 1.16, increasing the SOL token by 16% over the next 7 days.Solanas rally was also supported by development in decentralized applications (Dapps) use and increased nonfungible token (NFT) volumes. Solanas price is now trying to develop a $23 assistance and combine its position as the fifth-largest cryptocurrency (omitting stablecoins) by market capitalization, going beyond Cardanos $9.22 billion.Solanas DApp and NFT market activity rises When evaluating networks concentrated on Dapp execution, the variety of active users must be a leading priority. For that reason, one must start by measuring the addresses involved with clever agreements, which function as a proxy for the number of users.Solana Dapps active addresses, 7-days. Source: DappRadarNotice that the boost in activity was constant across all sectors, including NFT markets, decentralized finance (DeFi), collectibles, social, and gaming. Solanas active addresses engaging with Dapps went beyond those of Ethereum in the same duration, which were topped at 55,230. Solana has actually been acquiring traction in the NFT market due to its scalable and cost-effective option, as data is compressed and stored off-chain. This allows for more feasible production in larger quantities, as they need lower minting fees, making it possible for creators to reach broader audiences.NFT sales per blockchain, 7-days. Source: CryptoslamOver the past 7 days, the Solana network exceeded Polygon (MATIC) in NFT sales, accumulating $6.8 million in value according to Cryptoslam. In September, the scenario was reversed, with Solana totaling $23.9 million, while the Polygon network achieved $31 million in NFT sales.Network upgrade boosts personal privacy and reduces the tension on validatorsA prospective driver behind Solanas current 20% price gains was the network upgrade to version 1.16 on Sept. 28, which introduced a “gate system” to make sure the steady activation of new features on the network. This procedure assists maintain network stability and prevents issues triggered by unexpected changes.Another noteworthy change in this upgrade is “personal transfers,” which utilize zero-knowledge evidence to secure transaction information, boosting user personal privacy. The release likewise includes enhancements in RAM use for validators, resizable information accounts, and a system to determine damaged data.Overall, this upgrade brings enhanced efficiency, personal privacy, and security to the Solana blockchain, marking a substantial milestone in its development.Stiff competition from Ethereum layer-2 solutionsDespite Solanas competition with other blockchain networks, there is no doubt that Ethereum layer-2 solutions have actually gotten more traction in regards to total value locked (TVL) and activity. For example, Arbitrum holds $1.73 billion in TVL, and Optimism holds another $637 million, both vastly remarkable to Solanas $326 million, according to DeFiLlama.Even as Solana continues to make development in regards to scaling, security, and personal privacy, external factors are at play beyond the FTX bankruptcy drama, making the $23 resistance more difficult to breach than anticipated. Eventually, investors remain mainly focused on the Ethereum ecosystem, as it remains the leader in terms of developers and consolidated decentralized applications.This post is for basic details functions and is not planned to be and should not be taken as legal or investment guidance. The views, thoughts, and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

In September, the scenario was reversed, with Solana amounting to $23.9 million, while the Polygon network attained $31 million in NFT sales.Network upgrade improves personal privacy and alleviates the tension on validatorsA prospective chauffeur behind Solanas current 20% cost gains was the network upgrade to version 1.16 on Sept. 28, which presented a “gate system” to ensure the progressive activation of new functions on the network. The release likewise consists of improvements in RAM use for validators, resizable information accounts, and a system to identify corrupted data.Overall, this update brings enhanced privacy, security, and efficiency to the Solana blockchain, marking a significant turning point in its development.Stiff competitors from Ethereum layer-2 solutionsDespite Solanas competition with other blockchain networks, there is no doubt that Ethereum layer-2 options have acquired more traction in terms of overall value locked (TVL) and activity. Arbitrum holds $1.73 billion in TVL, and Optimism holds another $637 million, both significantly exceptional to Solanas $326 million, according to DeFiLlama.Even as Solana continues to make development in terms of privacy, scaling, and security, external elements are at play beyond the FTX bankruptcy drama, making the $23 resistance more difficult to breach than anticipated.