Traders push their SOL/USD bids higher after Solana teases the community with “ignition,” a mysterious feature that will go live on Tuesday. Solana (SOL) prices rose on Monday as traders speculated on what appeared to be a key but mysterious feature launch scheduled for later this week.
The SOL/USD exchange rate climbed to a new record high of $103.06 following a 9.35% intraday rally. The upside move surfaced days after Solana introduced “Ignition” on its official media handles. However, the team provided little details about the tool but prompted the community to guess that it would be about burning SOL tokens.
The speculation surfaced majorly because of Solana’s Ignition teaser video, which featured a purple flamed lighter.
As a public blockchain, Solana relies on SOL to aid two primary tasks: staking and transaction fees. The protocol burns a portion of the transaction fees it collects to keep the SOL supply limited against its 500,000,000 SOL issuance. However, Solana also creates new tokens based on a “dis-inflationary inflation schedule,” wherein the SOL issuance rate decreases periodically after starting at its highest value. Meanwhile, Solana claims that the supply will eventually stabilize at a “predetermined long-term inflation rate.”
But if “Ignition” is a token burn event, it should not deserve a dedicated landing page on the official Solana website. That is primarily because of the protocol’s previous SOL burning events that did not see specialized teasers from the Solana team.
Moreover, the Ignition teaser comes with a caption that reads, “The sky’s the limit. What will you launch?” with a period of Aug. 31–Oct. 8, underlining that it could be more an event for decentralized application developers or nonfungible tokens (NFT) creators and less a token burning episode.
But overall, traders appear to have found Ignition as a catalyst to keep their SOL bids higher. On the day of the announcement, which was on Friday, the SOL/USD exchange rate jumped 17.62%. The next day, the pair climbed another 9.2%. Nonetheless, the rally slowed down on Sunday just ahead of hitting the $100 mark, falling over 1.5%. But it resumed the upside, heading into the new week, claiming $100 as top digital assets, including Bitcoin (BTC) and Ether (ETH), dropped. SOL later dropped back below $100 on profit-taking sentiment.
Solana prices earlier started rallying in the wake of an overall crypto rebound after Bitcoin bottomed out below $30,000 on July 20. Later, SOL/USD picked additional upside momentum on a flurry of optimistic fundamentals, including digital asset manager Osprey Fund’s decision to launch a Solana-dedicated fund for institutional investors.
Last week, real-time data feeder Pyth Network announced going live on Solana’s proof-of-stake blockchain via its cross-chain communication tool, dubbed Wormhole. And before that, Solana also forayed successfully in the NFT sector mid-August with the launch of Degenerate Apes, which sold out 10,000 pictures of comic apes in just eight minutes and raked in 96,000 SOL in volumes (over $5.9 million at that time).
On the flip side, Solana’s 369% price boom from its July 20 low of $21.96 has turned SOL excessively overvalued, as per its current relative strength index reading (near 81). That amounted to a short-term correction in the sessions ahead.
|#||Crypto||Prediction||Accuracy||CVIX||Price||24h||7d||Market Cap||7d price change|
|1||BTC||Bitcoin predictions||76.4%||50||$49 128.70||-7.55%||-10.26%||$928 110 420 973|
|2||ETH||Ethereum predictions||81.2%||36||$4 120.96||-1.29%||0.92%||$488 780 881 496|
|3||BNB||Binance Coin predictions||80.8%||32||$562.73||-3.52%||-6.79%||$93 864 649 605|
|4||USDT||Tether predictions||92%||1||$1.001430||0.08%||0.06%||$74 263 665 994|
|5||SOL||Solana predictions||70%||62||$198.10||-2.74%||3.42%||$60 546 003 381|
|6||ADA||Cardano predictions||64%||72||$1.39||-8.63%||-9.93%||$46 287 449 057|
|7||USDC||USD Coin predictions||90.4%||2||$1.000097||-0.05%||0%||$40 029 698 519|
|8||XRP||XRP predictions||70%||66||$0.836385||-7.82%||-11.54%||$39 516 931 096|
|9||LUNA||Terra predictions||69.6%||62||$74.36||25.00%||66.02%||$28 825 591 225|
|10||DOT||Polkadot predictions||62.8%||76||$28.96||-12.18%||-17.48%||$28 604 270 701|
|11||DOGE||Dogecoin predictions||66%||73||$0.176449||-10.40%||-13.54%||$23 359 356 254|
|12||AVAX||Avalanche predictions||64.4%||75||$90.68||-11.80%||-18.97%||$22 009 485 134|
|13||SHIB||SHIBA INU predictions||62.4%||76||$0.000036||-8.88%||-7.14%||$19 722 014 052|
|14||CRO||Crypto.com Chain predictions||57.6%||86||$0.600991||-3.69%||-20.69%||$15 182 834 806|
|15||MATIC||Polygon predictions||67.6%||62||$1.97||-8.29%||22.24%||$13 803 349 402|
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