The price of the Solana token SOL rose on 30th August to a new record high of $103.06 following a 9.35% intraday rally. The Solana team appear to have sparked this sudden interest by announcing there would be a key, but mysterious, feature launch later this week. This had traders speculating about what it could be.
This new upside for SOL started after Solana started using ‘Ignition’ in all its official social media messaging, however, the team provided few details about the ‘Ignition’ tool, prompting the community to guess that it would be about burning SOL tokens. This was reinforced by Solana’s Ignition teaser video, which featured a purple flamed lighter.
Furthermore, the mysterious Ignition teaser comes with a caption, “The sky’s the limit. What will you launch,” and a period Aug 31 — Oct. 8, suggesting that it could be more an event for decentralized app developers or non-fungible tokens (NFT) creators, and less of a token burning episode.
This has sparked traders’ interest to bid on higher prices for SOL, and on the day of the announcement, the SOL/USD exchange rate jumped 17.62%. The next day, the pair climbed another 9.2%.
Solana is a blockchain project dedicated to building the fastest, scalable network. As of mid 2021, Solana supports 50,000 transactions per second (TPS) and produces new blocks every 400 milliseconds with the help of 200 validating nodes. All while maintaining close to zero network fees.
With the Ignition events starting this week, it is going to be interesting to see what happens with SOL’s price. It has already been so successful this year that it has made it into the Top 10 crypto list, and perhaps it will become one of the big crypto stories of 2021–2022. SOL is available on Binance, Kraken, Coinbase and other exchanges.