The price of Solana (SOL) has remained in a narrow range in recent days as Bitcoin has consolidated above $19,000. The SOL token is trading at $32.88, up about 6% from last week’s low. Its market cap has fallen to about $11.3 billion, well below its all-time high of over $70 billion.
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Magic Eden Gains Popularity
Solana is a leading blockchain for smart contracts that is considered a leading competitor to Ethereum. It is a proof-of-authority platform that uses Verifiable Delay Function (VDF). This principle requires a series of steps to perform transactions and provides a unique result that can be publicly verified.
Solana is known for its high throughput, as thousands of transactions can be processed per second in this blockchain. Moreover, Solana is considered a very secure platform that is widely used for developing all kinds of decentralized applications. According to its website, Solana has processed over 82.3 billion transactions. The average cost per transaction is $0.00025.
Unlike other blockchain networks, Solana has been used to develop applications that are widely used around the world. The most popular of these is Brave, a browser used by more than 50 million people every month. Solana was also used to develop StepN, the fast-growing platform that rewards users for physical activity.
Most recently, Solana was used to develop Magic Eden, the fast-growing non-fungible token (NFT) marketplace. It has become a leading competitor to OpenSea. According to DappRadar, the platform’s total transaction volume has grown to over $1.6 billion. The number of active users in the ecosystem reached more than 807,000. Magic Eden recently received $130 million from investors, and the company is valued at more than $1.6 billion.
However, as with other blockchain networks like Cardano and Ethereum that support smart contracts, investors’ biggest concern is that overall transaction volume on DeFi and NFT platforms has declined. DeFi applications on Solana have a total value of less than $3 billion. Solend, one of the leading DeFi platforms on this blockchain, recently went through a liquidity crisis.
Solana Price Forecast
In the four-hour chart, we can see that the SOL price has been moving sideways over the past few days. The price line here is along the lines of the moving averages of the last 25 and 50 days. Current SOL price is also well below last week’s high of $43.05. Like Safemoon, Solana has also formed a bearish pennant pattern, while the Relative Strength Index (RSI) has moved to the neutral point at 50.
Therefore, there is a high probability that Solana will experience a bearish breakout in July. Should it be the case, the next important support is at $26.15, which is about 22% below the current level.
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