Recently, popular New Zealand-based crypto analyst Lark Davis (@TheCryptoLark on Twitter) explained why Solana’s $SOL token has been outperforming in 2021. Also, we look at updated $SOL price targets from other another prominent analyst.
$SOL is the native token of the Solana blockchain. Solana is “an open source project implementing a new, high-performance, permissionless blockchain” that is maintained by the Geneva-based Solana Foundation.
According to a report by The Daily Hodl, in a video released last Tuesday, Davis told 430K subscribers of his YouTube channel that there were five main reasons behind $SOL’s meteoric price rise this year:
Builders are actually showing up… You got to have stuff built on your blockchain. Otherwise, you’re a ghost town. Solana is definitely not a ghost town. We have loads of applications built on Solana [that] you can actually go out [and] use right now, today…
NFT has been a massive trend recently. Solana’s got a lot of NFTs, too. That’s been part of what has been driving the demand: to get the main Solana asset, the SOL token, because people want to go and buy NFTs on Solana, which are priced in Solana.
- Excellent Financial Health (or “truck loads of cash” as Davis puts it)
Part of the reason we’re seeing so many developers committing to the SOL ecosystem right now – they’re getting money. They’re getting grants. They’re getting a lot of investments… So it’s $314 million, plus the backing of FTX, which having a cryptocurrency exchange that big, that’s like [having] more money than God.
Institutional money is starting to take a interest in Solana. Osprey, they announced a Solana fund two weeks ago. They are far from the only big-money players piling into Solana right now.
- Rapidly Growing DeFi Ecosystem (with over $11.57 TVL in Solana DeFi)
According to data by TradingView, on crypto exchange FTX, the $SOL price set the current intraday high of $171.4475 at 00:15 UTC on September 14. At the time of writing (09:30 UTC on September 12), SOL-USD is trading around $169.1925, which means that it is up 8.23% in the past 24-hour period.
On September 8, pseudonymous crypto analyst “Bluntz” told his over 163K Twitter followers that he believes that $SOL is headed to $300 (presumably, in the medium term).
Then, earlier today, he gave his long-term price target for $SOL.
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