Solana prices rally due to new users flocking onto its network.
This month alone, the Defi platform's token (SOL) increase by over 50% in prices. This is believed to be as a result of an air drop by a new project on Solana's blockchain.
Major Signals
- Serum, Solana's main decentralized exchange was behind the latest COPE airdrop.
- 2,000 COPE tokens were dispersed to users.
- The airdropped token's success triggered other projects.
- SOL has seen a rally of over 50% since then.
Air drops have become increasingly popular recently. An airdrop is a free delivery of cryptocurrency tokens to a designated group of users. An airdrop is a free delivery of cryptocurrency tokens to a designated group of users.
Airdrops are commonly used by cryptocurrency companies to generate interest in their ventures. Airdrops can happen on a predetermined schedule or on the spur of the moment. An airdrop is a free distribution of cryptocurrency tokens to a specified group of users. Usually there might be requirements that would be met before a user can benefit from the air drop.
New cryptocurencies usually use it to attract a number of followers in a short period of time. In the past six months there have been a number of airdrops, the most notable of them being Uniswap's 400 UNI drop and MEME airdrop.
Recently, Solana, an open source Defi Project saw several projects that are based on it's blockchain conduct an airdrop. Serum, Its main decentralized exchange was behind the latest COPE airdrop, which dispersed 2,000 tokens to users that took part in Solana and Serum's combined DeFi hackathon.
The reward of the air drop, COPE was listed DEX Serum at $0.50. By April 11th, it had gained by over 400% to trade at $5.43. Spurred on by COPE's success, other projects with similar sounding named like HOPE and KOPE cropped up on the Solana blockcahain.
This coincided with the recent 55% rally of SOL, leading many to believe that this is the reason for the rally. Although not verified based on data, some of the airdrops needed users to have SOL, to receive the reward tokens. Users that would add these new tokens to their wallets, also require a small quantity of tokens to finish executing the contract.
Conclusion
The Airdrops are far from being over, there are many projects yet to be launched on thee Defi network's blockchain. Some of them were listed in a recent tweet by Solana via twitter.
They include: Hedgehog (A User-centric prediction markets platform) Solstarter ( Solana's first IDO platform) Hxro.Network (A decetralized derivatives liquidity protocol) StepFinance (Position tracking) Media Network (A P2P Content Delivery Network) PsyOptions (A decentralized options protocol) and aynthetify (protocol for synthetic assets).
All of these would definitely keep the Solana blockchain very busy and possibly keep prices all the way up.
Question of the day
Do you think Sol could hit $100 in 2021? Let us know in the comments!
