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Why Are Solana, Bonk and Chainlink Soaring Today?

Why Are Solana, Bonk and Chainlink Soaring Today?

The cryptocurrency market is seeing strong buying pressure taking place today as the overall value of all cryptocurrencies continues to remain above the $3 trillion level. As the market is up nearly 1% in the last 24 hours as of 2:15 PM ET, it’s a good day to look at some of the leading tokens driving today’s market returns.

Interestingly, solana (LEFT 1.16%), curse (BONK -1.39%)And chain link (CONNECTION 8.85%) Three of the top winners accounted for a significant percentage of these gains. These three tokens are up 11.8%, 14.3% and 5.3% respectively since 16:00 on Friday.

More importantly, each of these three projects are the biggest contributors to the Solana ecosystem and are linked to several key factors over the past few days.

What’s causing these big moves?

Solana’s recent rise has pushed this top token towards an all-time high during the 2020/2021 hype cycle. That’s impressive considering how far Solana has fallen from its high, but it’s also a sign that investors see this project as one of the fastest-growing in the space and best attuned to shifts in sentiment over time.

Open interest for: solana Futures have surpassed $5 billion for the first time ever, leading many investors to place long-term derivative investments in this token. These speculators are betting that Solana’s recent momentum will continue and this token will reach all-time highs. Increasing leverage increases volatility, but for now this volatility appears to be mostly on the upside.

Much of this increased activity was driven by expectations that current SEC Chairman Gary Gensler would soon be out of a job (as the Trump administration announced its changes), paving the way for the approval of the VanEck SOL ETF. This exchange-traded fund should provide significant capital inflows into Solana and improve the supply and demand fundamentals of its native token.

Additionally, Solana-based meme coin Bonk’s announcement that the project will burn its 1 trillion tokens in the next six weeks provides a similar incentive for this highly volatile coin. Investors are counting on the fact that this token burn, along with ongoing buying pressure from speculators, could lead to huge gains. Since Bonk is built on top of the Solana network, a win for Bonk means a win for Solana.

Chainlink’s outperformance appears to be more broadly tied to expectations of increased on-chain development activity as prices rise in general. Some of the best Solana-based applications use Chainlink’s oracle network; This allows off-chain data such as price feeds to be carried on-chain (for the development of things like decentralized exchanges). Therefore, as Solana’s ecosystem grows and activities increase, Chainlink will remain a significant beneficiary of these moves.

Solana is the ecosystem to be in right now

Among the major crypto networks, Solana’s ecosystem is one of the ecosystems I’m most interested in following. There’s a lot going on at Solana, from trading activity to non-fungible tokens (NFTs) to meme coins. In fact, developers have clearly targeted Solana as the network of choice for building what I consider to be “cool” utility applications that could lead to the innovative blockchain-focused future that many bulls are talking about.

It remains to be seen how long this momentum can continue, but for those considering the rise of this latest bull market in crypto, I recommend at least taking a look at Solana’s ecosystem now.