Among the most popular digital currencies, Solana (SOL) has maintained its steady run in price this year as the coin is still up 15.69% week-to-date (WTD) amid a broader market slip. This price growth has helped Solana stay resilient despite having its price slip from its best price growth over the week, pegging it at $16.03 at this time.
The prices of digital currencies rise when more people make purchases compared to those who sell. Buying a coin has many boosting factors, and in the case of Solana, crypto analytics provider Messari has highlighted two other factors beyond the recent tweet from Vitalik Buterin and the hype in the protocol’s memecoin Bonk (BONK) that is fueling the growth of SOL.
As an excerpt from research by its senior analyst Tom Dunleavy, Messari highlighted reducing gas fees on Solana despite its growing transaction rate as one of the two likely fundamentals powering the coin’s steady growth.
With a reduced gas fee, more microtransactions involving SOL can be carried out, a situation that is proving reasonably necessary at this time when more retail buyers are embracing BONK.
End to Solana outage
According to the update shared by Messari, the resilience of the digital currency at this time may also be fueled by what seems to be an end to the outages the protocol has been suffering due to a number of upgrades implemented.
Last year was a very tough one for Solana as the network experienced a significant number of outages which, alongside the damning crypto winter, fueled a drop in the price of the network’s native coin. The outage even pushed vocal Cardano founder Charles Hoskinson to take a jab at the protocol.
With the stability being enjoyed at this time, confidence in buying, HODLing and using Solana seems to have increased, thus lending credence to the recent price run.
