Organizations Accumulating Solana Following Firedancer Testnet Launch

Solana’s recent surge, which saw SOL’s value increase by over 50% in just two weeks, owes a substantial portion of its momentum to Coinbase, as per data provided by Paris-based Kaiko. Since October 25th, the cumulative volume delta (CVD) for SOL on Coinbase has surged by nearly $1 million, indicating a substantial influx of capital.

This positive CVD trend on Coinbase coincided with similar trends on Binance and Kraken earlier this week. However, the South Korean exchange Upbit has experienced negative CVD for the past two weeks.

The CVD metric is a valuable indicator of market sentiment, tracking the net difference between buying and selling volumes over time. Positive values signify a surplus of buying activity, while negative values point to the opposite.

Kaiko analyst Riyad Carey noted that the median order size on Coinbase has been notably higher than on other exchanges, possibly indicating institutional interest in acquiring SOL through this Nasdaq-listed platform.

Coinbase’s prominence in the SOL market comes after VanEck, a significant institutional asset manager, published a report outlining a bullish scenario that could potentially drive SOL’s price up to $3,200 by 2030. This prediction is contingent on Solana becoming the first blockchain capable of accommodating applications with over 100 million users.

Nonetheless, SOL’s recent price gains have not yet translated into a significant increase in on-chain activity. In the past two weeks, the total value of assets locked in Solana-based DeFi protocols has decreased from 12.03 million SOL to 10.23 million SOL, the lowest level since April 2021, according to DefiLlama. While total value locked (TVL) is not a perfect metric, it is commonly used to assess the utilization of smart contracts.

Although there has been an uptick in volume on Solana-based decentralized exchanges and the number of active addresses on the network, these increases have not been substantial enough to justify the recent price gains, as highlighted by on-chain analyst Patrick Scott.

Solana Achieves Impressive Milestone Amid Firedancer Testnet Launch

In a remarkable turn of events, Solana has reached a significant milestone concurrent with the launch of its blockchain scaling solution, Firedancer.

On November 2, Solana’s native token, SOL, soared above the $41 price mark, marking its highest point since August 2022. Data from Cointelegraph Markets Pro affirmed this remarkable surge for Solana, often referred to as the “Ethereum Killer.” In contrast to its competitor, Ether (ETH), Solana exhibited a considerably more positive price trend.

Over the past 30 days, SOL posted gains of over 80%, while ETH managed a modest 11% increase within the same timeframe. Additionally, Solana’s performance over the past 7 days indicated an impressive surge of more than 34%, as reported by CoinMarketCap.

As of November 2 at 07:03 AM EST, SOL was trading at $43.28, representing a notable 10.55% surge over the previous 24 hours. This impressive rally has propelled Solana up the rankings on CoinMarketCap, boasting a market capitalization of $18.20 billion. Solana now stands as the seventh-largest cryptocurrency, surpassing Dogecoin (DOGE) and Cardano (ADA).

Solana’s surge has not only impacted its price but has also led to substantial inflows into Solana-based investment products over recent weeks. Nonetheless, data from CoinMarketCap still highlights that SOL remains 83.37% below its all-time high of $260, reached in November 2021.

It’s important to note that SOL is not the sole altcoin experiencing positive price movements in response to overall market sentiment. Solana’s Fear & Greed Index is currently at 50, indicating neutral market sentiment.

In this context, Chainlink (LINK) saw a remarkable 54% surge over the past 30 days, with Near (NEAR), Avalanche (AVAX), and Bitcoin (BTC) also posting substantial gains of 37.5%, 32%, and 30%, respectively, in the same period.

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Furthermore, Solana’s much-anticipated scaling solution, Firedancer, has officially launched its testnet. Developed since August, this validator blockchain for the Solana network is expected to address network outages comprehensively. Solana Foundation executive director Dan Albert made the announcement during Solana’s Breakpoint conference on October 31.

🔥💃 The first version of @jump_firedancer
🔥💃 Live on testnet.
🔥💃 Right now.

Watch @DanPaul000 share the news live on the @SolanaConf stage.

Only at #Breakpoint2023. Watch the livestream: https://t.co/51G659GtUO pic.twitter.com/llaHoiendH

— Solana (@solana) October 31, 2023

Firedancer is anticipated to provide a permanent fix to Solana’s historical issues related to network outages. Anatoly Yakovenko, the founder and CEO of Solana Labs, described this development as a scaling solution offering enhanced speed, reliability, and diversity. The mainnet for Firedancer is slated for launch in the first half of 2024, with the project benefiting from the contributions of the Web3 development company, Jump Crypto.

While Solana experienced 14 partial or major outages in 2022, the Network Performance Report for Q2 2023 indicates improved uptime and only a single major outage in February, demonstrating the network’s commitment to enhancing its reliability.