Solana, like many other Proof-of-Stake (PoS) cryptocurrencies, relies on a decentralized network of validators who secure the network by staking their SOL coins. In exchange for staking, validators earn rewards.
However, as the price of Solana began its recent rise, a noticeable drop in SOL staked was observed. This suggests that some validators are opting to stop staking their coins, possibly to take advantage of the price increase and make some early profits.
Market capitalization and price of Solana rise
Meanwhile, Solana had a banner day on Tuesday, rising 17% and adding more than $11 billion to its market cap, which now stands at more than $70 billion. This impressive performance saw Solana outperform industry giants like Bitcoin (BTC) and Ethereum (ETH), which remained mired in their own price swings. With a market capitalization totaling an impressive $80.7 billion, Solana’s surge has captured the attention of the crypto world.
This unstaked activity has caught the attention of analysts, with the unstaked amount reaching a significant 5 million SOL in the past week. With Solana currently trading around $157 per coin, this translates to approximately $780 million worth of tokens returning to the market. The inflow of such a large volume in a short period could lead to a temporary oversupply situation on the stock exchanges.
SOL price action in the last 24 hours. Source: Coingecko
Withdraw or persevere?
The potential impact of unexpanded SOL on price is a matter of debate. Without a corresponding increase in demand to accommodate this additional supply, there is a risk of an initial price correction in the coming days. This could lead to Solana pulling back from its current position and settling around the $150 mark before potentially resuming its upward trajectory towards $200.
Total crypto market cap currently at $2.3 trillion. Chart: TradingView
The $200 goal
The coming days will be crucial for Solana. The bulls need to maintain strong buying pressure to absorb the undeployed coins and push the price above the $160 resistance zone. If successful, it could propel Solana to its $200 goal. However, if this does not happen, combined with a large-scale sell-off of undeployed SOL, it could trigger a correction up to $150.
Solana breakpoint 2024
In another development Solana breakpoint 2024 takes place in Singapore, from September 20 to 21. This event provides participants with full access to the heart of the Solana community, including insightful talks and exclusive events.
Special subsidized rates are available for developers, makers, artists and students, ensuring a wide range of individuals can participate in this transformative event. Located just a 15-minute commute from central Amsterdam, the Solana Campus offers a variety of stages for insightful conversations, networking spaces to build connections, and free transportation for participants’ convenience.
Solana Breakpoint is a key event for the Solana community, providing a platform for developers, validators and other ecosystem participants to discuss the latest developments, share insights and showcase their achievements. The annual conference highlights the potential of the network and its role in the broader blockchain space, with an emphasis on performance, reliability and innovation.
Featured image from Pexels, chart from TradingView
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