Solana (SOL) has been moving downwards since the end of August. The price even dipped to $195 level earlier highlighting signs of weakness for the sixth-largest cryptocurrency by market cap. However, just recently the coin has expressed its resilience after surging sharply back above $200.
The surge is majorly attributed to the recent reports that Sharps Technology has raised approximately $410.88 million for the purchase of SOL. Additionally, the approval of the Alpenglow upgrade, which will slash transaction finality from 12.8 seconds to 150 milliseconds, may also have boosted Solana’s market sentiment.
SOL Price Rallies Sharply Back Above $200
Solana has rallied sharply above $200, following a dip to $195 earlier on the day. According to data by CoinMarketCap, the price of SOL now sits at $204, marking a 2.21% surge over the last 24 hours.
The coin has also seen a spike in trading volume over the last 24 hours. Solana’s trading volume now sits at $7.01 billion, surging by 6.87% on the day. But what’s behind the SOL price action?
Solana’s price action can be attributed to Sharps Technology’s plan to acquire SOL. As per reports, the firm raised approximately $410.88 million for the purchase of Solana. These tokens will be acquired to boost the firm’s Solana treasury operations.
“Sharps Technology, Inc. raised approximately $410.88 million through private placements. The company plans to use the proceeds to acquire $SOL through open market purchases and establish Solana treasury operations,” Marty Party shared.
At the moment Sharps Technology holds 2.14 million SOL tokens worth over $400 million as per an official press release. With plans to buy more SOL, the move has boosted the market sentiment for the cryptocurrency resulting in a sharp price spike.
Solana to Proceed with Alpenglow Upgrade After 99.6% Greenlight
Besides the boost from Sharps Technology, the price action of SOL can also be attributed to the recent approval of the Alpenglow upgrade. As per reports, Solana’s Alpenglow proposal received a greenlight with 99.6% of the voters voting in favor for the upgrade.
If implemented, the Alpenglow upgrade will reduce the current finality from 12.8 seconds to just 150 milliseconds. Achieving nearly a 100-fold speed increase, the upgrade could bring Solana’s performance in line with modern internet infrastructure.
Furthermore, ecosystem members have described the upgrade as the most-important upgrade in the history of Solana. This update replaces TowerBFT with Votor and Rotor, enhancing throughput for real-time trading and gaming.
For the Solana ecosystem, the upgrade is bullish because sub-second finality positions it a viable Web2 competitor. This could potentially accelerate its institutional adoption in high-frequency applications. Such a boost in adoption could reflect on the price of SOL.
The recent rally of Solana above $200 is definitely a positive sign, especially after such a sharp dip earlier. It shows how quickly market sentiment can change with strong developments like the Alpenglow upgrade. For those who enjoy exploring creative tools beyond crypto updates, you might find this fancy text maker useful for adding a unique touch to your digital presence. It’s always interesting to see how innovation impacts both finance and design spaces together.
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