Solana will go live on Coinbase Pro on May 24th after resisting the crypto market crash this week and hitting a new all-time high of $ 58.30 three days ago.
When Bitcoin, the king of cryptography, fell to around $ 30,000 this week and the entire crypto market lost over $ 1 trillion in market cap, Solana seemed unimpressed by the storm around him – which was the profits when trading in it Bitcoin solidified and helped protect Bitcoin funds from crypto investors who took refuge in the DeFi tokens.
Solana is an intelligent blockchain platform for contracts that is touted as one of the leading competitors and has the potential to steal the crown of Ethereum in the decentralized financial sector – thus offering cheaper and faster transactions.
According to an announcement yesterday, Solana will go live on Coinbase Pro on May 24th, and the world’s largest cryptocurrency exchange has already enabled SOL deposits. The major US exchange will contain five trading pairs for the SOL token: USD, EUR, USDT, BTC and GPB.
Coinbase Pro is the second American exchange to list SOL after Binance.US, which listed SOL in September 2020.
Following Coinbase’s announcement yesterday, Solana’s price rose from around $ 45 to $ 50 minutes later. SOL is now the 15th largest cryptocurrency with a market capitalization of around $ 12 billion.
The Solana project has seen a number of promising developments recently, building an ecosystem of new projects, making large investments, and becoming interoperable with other networks. Solana is also supported by celebrity crypto figures like Sam Bankman-Fried, founder of the FTX cryptocurrency exchange.
Solana DeFi crypto crash
Solana is currently trading at around $ 44, up over 6% from a slight retracement from its 24-hour high of $ 50 that immediately followed Coinbase’s announcement.
The price of altcoins usually tends to move strongly towards the price of Bitcoin (BTC) and therefore tends to rise and fall with the price of the original cryptocurrency. Needless to say, Bitcoin fell quite sharply this week from its weekly high of $ 51,438 to a low of $ 30,681.50, according to CoinMarketCap.
However, with the advent of meme-driven trading, the crypto industry has paradoxically matured, and many other blockchains have started to generate their own unique value in the ecosystem, breaking the correlation with Bitcoin price.
“Bitcoin’s flash crash, which many in space believe was manipulated by whales, washed out many speculators and traders who got into Bitcoin and other markets because of Tesla, Elon Musk, GME or Doge, and they did were washed out. Solana is not driven by the same mainstream, ”said Ben Caselin, director of research and strategy at AAX Exchange, in an interview with Forkast.News.
“Technically, Solana is one of the most powerful blockchains out there. There are many developers and projects involved on Solana including Raydium, Mango Markets and Step.Finance, ”added Caselin. “In contrast to Binance Smart Chain or even Ethereum, these projects are less hype-driven and appeal to a more experienced community of crypto investors.”
Another factor was Bitcoin’s dwindling dominance, which is at a three-year low. BTC is now responsible for only 40% of the total crypto market capitalization as Ethereum and other altcoins like Solana grow in popularity and importance day by day.
“Ethereum and Altcoins have outperformed Bitcoin not only in the past few weeks, but also in the past few months,” said Justin d’Anethan, Sales Director at Equos Exchange, in an interview with Forkast.News. “If you look at the Bitcoin dominance charts, it has gone down a lot.”
Given that regulators are cracking down on crypto companies in the US, but also regulators dealing with Binance’s activities in relation to potential money laundering and tax crimes, and more recently China, are warning of possible regulations for companies that use crypto Using payments, investors could look for alternatives, Anethane said. “By alternatives, I mean non-payment transactions and coins that instead focus on the various use cases of blockchain technology.”
DeFi Token Tilt but Bitcoin for security reasons
In addition to Solana, other DeFi tokens (decentralized finance) have held their own – Polygons MATIC tokens and Harmony’s ONE.
“We have seen SOL, MATIC and ONE increase and the DeFi tendency increased overall as the market looks for Layer 2 solutions or projects that largely support users, companies or the cryptosphere itself,” said d ‘Anethane.
Polygon is a platform for creating and scaling decentralized applications and has found a firm foothold in the center of the explosively growing DeFi space. In the past week alone, 75,000 new users and a transaction volume of $ 1 billion were added. On May 18, the company hit a new all-time high of $ 2.18.
AAX’s Caselin wasn’t surprised when “Polygon’s rise was expected as they made progress in offering solutions for Ethereum.”
Meanwhile, Harmony’s ONE token has weathered the crypto market crash remarkably well, trading at $ 0.18 on May 19, within just 2 cents of its all-time high.
While DeFi tokens SOL, MATIC and ONE shone this week, Equos’ d’Anethan said Bitcoin is still considered the safest cryptocurrency in the room for investors.
“It’s worth noting that the crash has pushed investors back into the safety of BTC,” d’Anethan said, adding that Bitcoin has seen its strongest rebound since the crypto price carnage on May 18, and is now back around that $ 40,000 soars.