by Solana (SOL) saw massive uptrends that had it overtaking Terra’s LUNA to be the 8th-largest digital currency by market cap. The upside rally emerged from positive news that triggered demand for the alt over the previous week.
SOL, the most staked alt in the marketplace, gained 21% within the previous seven days to trade near a 2-month peak of $110. For now, Solana’s market cap hovers at $35.9 billion, surpassing LUNA’s $33 billion. That comes two months after Terra overtook Solana in market cap – though the primary factor for such developments were SOL’s massive losses.
Terra’s alt lagged its peers over the previous week and traded at the value area seen last Monday. However, the altcoin has gained support this year amid increased UST popularity. LUNA traded at $93.92 at this publication, whereas SOL changed hands near $110.82.
Institutional Interest, Gaming Partnership Boost Solana
A South Korean gaming developer Krafton revealed partnering with Solana Labs last week. Krafton is a renowned gaming developer behind the wildly known PUBG. Remember, the strategic partnership aims to enhance blockchain games and the Metaverse. The developer commented on Solana’s capability to house highly scalable apps as the primary driver behind the collaboration.
CoinShares and the leading exchange FTX joined the partnership over the previous week to introduce a physically-backed SOL ETP for European market players. That would allow investors to access Solana staking rewards without investing directly in the altcoin.
The exchange-traded find will launch with seed capital worth $100 million (1 million $SOL). Moreover, the products cater to institutional investors, which have been drivers of cryptocurrency prices lately.
Moreover, Solana makes up about a quarter of the latest Grayscale Smart contract fund. Experts expect the move to attract institutional investment in Solana.
Broad Market Sentiment Also Improves
The broad cryptocurrency marketplace also saw an increased interest within the past week. The global crypto market capitalization gained 12% to topple the $2T mark, levels not seen since February. Ethereum saw massive surges as it awaited the shift to the PoS model. The gains seem to spill over to alter tokens. Also, the switch ensured attention to other Proof-of-Stake coins, benefiting Solana (SOL).
Stay tuned for upcoming market developments.
