Solana surges 15% after Coinbase lists two key tokens
The move to add Solana-based tokens to Coinbase is not only a win for Solana investors. Investors in projects built on Solana will now gain increased exposure to Coinbase’s large group of investors.
Solana (SOL) is surging after cryptocurrency exchange Coinbase (COIN) listed two other tokens of the Solana ecosystem.
Solana’s token climbed 15% to a high of $112.16 after Coinbase announced via Twitter on Monday that it had begun accepting inbound transfers of two Solana ecosystem tokens, Bonfida (FIDA) and Orca (ORCA). It slipped a bit as of this writing but is up 10% over the last week.
The move to add Solana-based tokens signals broader acceptance of the Solana ecosystem, which is how a coin can move into the mainstream. It’s the first time non-Ethereum assets were listed on Coinbase, according to Coindesk. As a result, Solana-based cryptos will benefit from the increased exposure to new investors.
What’s Solana?
Solana is a blockchain platform built to host decentralized, scalable applications. Founded in 2017 by Anatoly Yakovenko, Solana is an open-source project run by the Solana Foundation based in Zug, Switzerland.
Solana is one of the world’s fastest blockchain networks by number of transactions. According to Solana documentation, it can process 710,000 transactions per second (TPS). It’s processing 2,544 TPS at the time of this writing.
It also has significantly lower transaction fees than rival blockchains like Ethereum (ETH). Though they fluctuate, Solana fees are currently ​​$0.00025 per transaction. In comparison, the average cost to transact with Ethereum at the time of this writing is 0.012 ETH, or $32.42, according to data from BitInfoCharts.
How Solana has outperformed the market
Solana prices surged to over $112 Tuesday afternoon from around $90 on Monday morning. But this is far from its top.
It reached a high of $260.12 in early November 2021 but fell over the next few months as the price of Bitcoin (BTC) pulled the broader market lower.
Much like stocks, the cryptocurrency market has experienced massive drops in value over the past few months. Since November, the entire crypto market has shed nearly $1.3 trillion, roughly 45% of its total value.
Now what?
The move to add Solana-based tokens to Coinbase is not only a win for Solana investors, who saw a spike on the announcement. Investors in projects built on Solana will now gain increased exposure to Coinbase’s large group of investors.
At the time of publication, Matt Miczulski owned BTC and ETH.
Paid non-client promotion. Finder does not invest money with providers on this page. If a brand is a referral partner, we're paid when you click or tap through to, open an account with or provide your contact information to the provider. Partnerships are not a recommendation for you to invest with any one company. Learn more about how we make money.
Finder is not an adviser or brokerage service. Information on this page is for educational purposes only and not a recommendation to invest with any one company, trade specific stocks or fund specific investments. All editorial opinions are our own.
