SOL Pumps to New ATH on Extremely Low Funding After Blockchain Suffered a “Performance Degradation”

Solana has hit yet another all-time high.

A couple of hours back, SOL surged past $146 to make a new ATH. Up over 21% in the past 24 hours, SOL is currently trading under $140.

In the past 30-days, SOL has rallied more than 312% and is recording 7,656% gains YTD.

With the latest gains, SOL has now achieved a market cap of $40.5 billion. Having trumped above its competitor layer 1 blockchain Polkadot (DOT) already, the crypto asset has now jumped above Dogecoin to claim the spot of the 7th largest cryptocurrency. DOT -16.72% Polkadot / USD DOTUSD $ 28.56
-$4.77-16.72% Volume 3.77 b Change -$4.77 Open $28.56 Circulating 987.58 m Market Cap 28.2 b 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 6 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 1 w More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits DOGE -11.66% Dogecoin / USD DOGEUSD $ 0.21
-$0.02-11.66% Volume 2.17 b Change -$0.02 Open $0.21 Circulating 131.37 b Market Cap 27.46 b 4 d Coinbase is Coming for the Sizable and Lucrative Futures and Derivatives Market in the US 1 w Robinhood Trading App Rolls Out “Dollar Cost Averaging” for Crypto Investments 1 w Crypto Market Dips and Over 165k Traders Get Liquidated for More Than $890 Million

Solana is now gunning for the 6th spot, which XRP currently holds with a market cap of $59.2 bln above that $66.1 bln Tether (USDT); then again comes two more competitors BNB and Cardano, that have a market cap of $75 bln and $95 bln respectively. XRP -13.97% XRP / USD XRPUSD $ 0.92
-$0.13-13.97% Volume 5.65 b Change -$0.13 Open $0.92 Circulating 46.62 b Market Cap 42.78 b 6 d Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 1 w More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits 1 w Southeast Asia’s Largest Bank (DBS) Sees Increasing Crypto Demand from Corporate Investors and Wealthy Family Funds BNB -11.86% Binance Coin / USD BNBUSD $ 366.11
-$43.42-11.86% Volume 2.27 b Change -$43.42 Open $366.11 Circulating 168.14 m Market Cap 61.56 b 6 h Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 1 w Solana (SOL) Pulls Over A 100x in 2021, Rising to the Top to Fight Ethereum ADA -11.45% Cardano / USD ADAUSD $ 2.07
-$0.24-11.45% Volume 5.75 b Change -$0.24 Open $2.07 Circulating 32.03 b Market Cap 66.37 b 5 h JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 6 d Polygon to Integrate EY’s Blockchain Solutions Into Its Ecosystem

Interestingly, despite the latest rally, the funding on SOL perpetual contracts is still extremely low, the highest being 0.0459 on Binance and is even negative -0.0193 on OKEx, according to Bybt.

“Sol funding remarkably low for something that is melting faces. Looks like people are scared of the pump,” said trader SmartContracter, who expects SOL to rally to at least $240 and flip BNB.

However, according to QCP Capital, “Fibonacci trend projections show that we are at the 1.618 extension at 115 level,” as such an interim top can be anticipated at these levels. “With vols this high, SOL calls might be a decent sell,” it added.

Meanwhile, the latest uptrend in SOL prices also came just as Solana Status reported that its mainnet-beta is “experiencing intermittent instability.”

gg pic.twitter.com/53t7FHQSvq

— Hsaka (@HsakaTrades) September 2, 2021

Solana Status, a Twitter account that shares updates for the Solana network, website, and the Explorer, said on Thursday that Solana Mainnet Beta suffered a performance degradation last night, resulting in temporarily reducing network throughput.

This period of intermittent performance degradation lasted about an hour.

The network has since been recovered while engineers continue to diagnose the root cause.

“Seller can't move tokens? Proceed to ATHs,” quipped trader Hsaka on the token’s price performance coinciding with the network issue.