The latest bout of buying has pushed SOL/USD’s quarter-to-date gains up by more than 450%.
Solana (SOL) bulls have largely ignored its overvaluation risks as the blockchain asset goes after another milestone price level.
The SOL/USD exchange rate almost reached $200 on Tuesday as investors continued to treat Solana as a long-term competitor to Ethereum, the world’s leading smart contracts platform.
More bullish evidence came on Monday after Sam Bankman-Fried, CEO of crypto derivatives platform FTX, announced Solana’s integration into FTX’s upcoming nonfungible token (NFT) marketplace.
On Monday, Bankman-Fried revealed that the new marketplace would enable NFT creators and owners to trade their digital arts cross-chain using Solana and Ethereum. The platform would also make it possible to trade NFT collections from rivaling marketplace OpenSea on FTX.
The NFT marketplace went live on Monday and is hosted by FTX.US, a United States-regulated cryptocurrency exchange backed by FTX. That enables United States users to mint and trade NFTs via FTX.
Greg Waisman, co-founder and chief operation officer of payment network Mercuryo, envisioned exponential growth for the Solana ecosystem based on its growing adoption among the decentralized finance (DeFi) and NFT space.
He believes Solana’s boom is similar to Ethereum and Binance Smart Chain, adding that it would boost SOL/USD exchange rate to as high as $500 in the second half of 2021.
On Tuesday, SOL/USD’s quarter-to-date returns reached a little over 450% as it established its all-time high at $196.78. Since then, the pair has already pulled back as traders take profits.