Solana (SOL) has been among the top gainers over the past weekend. It was because of the speed that followed Announcement That Google was now running Solana nodes. As expected, the price of the digital asset surged in the period following the announcement, rising more than 15% and eventually crossing the $38 mark for the first time in nearly two months. But as the market enters another trading week, can SOL maintain its lead?
Solana sees slow start
The new week has started with some negative movement for Solana. Over the past 24 hours, the digital asset has seen a double digit decline, which represents a sharp decline over the past two days. Hence, despite the bullish news from Google, investors remain bearish towards the cryptocurrency.
This reflects weakness in the digital asset and inability to hang onto the gains recorded during the weekend. After selling digital assets over the weekend, investors have begun to turn their attention to their larger counterparts.
Even SOL trading volume witnessed a double digit decline in the last 24 hours. As trading slows, so does the likelihood of the asset’s value going down. It should be noted that at the time of writing this SOL is down to around $31, placing it dangerously close to the weekly low of $30.35. While this could be interpreted as bullish, as it is still above its weekly low, it should be noted that the digital asset has lost almost $6 of its value to reach this point.
Nevertheless, the news from Google remains a long-term bullish indicator not only for SOL but for the entire cryptocurrency market. This signals the entry of players into a space that goes beyond just trading in cryptocurrencies like bitcoin and ethereum and actually takes a more fundamental position in the market.
SOL price falls to $31 | Source: SOLUSD on TradingView.com
working on sol network
The fact that Google has started running validators on the Solana network is not the only bullish news for the digital asset. Co-founder Anatoly Yakovenko has said that the network is actually working on a fundamental issue; The power outage has rocked digital assets.
Speaking at the Breakpoint 2022 annual conference in Portugal, Yakovenko explained that the team had worked on recent updates to help make the network more reliable. He explained that many of the power outages recorded were “not the experience we want to deliver”.
This could mean that the days of network blackouts are coming to an end for Solana. If so, it eliminates a significant pain point for users while building trust in the network across the space. This, coupled with the fact that the USDC issuer is Circle planning to launch A cross-chain transfer protocol of Euro Coin (EUROC) on the Solana Blockchain due in early 2023, the next few months are shaping up to be quite fast for an Ethereum competitor.
Featured image from Crypto News, chart from TradingView.com
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