Amidst a crashing crypto market, some altcoins are making waves in the crypto space. One of them is Solana (SOL) which continues to surge like there’s no tomorrow.
Lark Davis, who is an important crypto trader, noted that there are five reasons which are contributing to SOL’s surge.
Top 5 reasons for SOL’s surge
In a YouTube video, he said that SOL is exploding because developers are actually building on its blockchain.
“Builders are actually showing up… You got to have stuff built on your blockchain. Otherwise, you’re a ghost town. Solana is definitely not a ghost town. We have loads of applications built on Solana [that] you can actually go out [and] use right now, today…” he said.
The rise of non-fungible tokens (NFTs) is another factor that is contributing to the growth of Solana, according to Davis.
“NFT has been a massive trend recently. Solana’s got a lot of NFTs, too.”
He also said that Solana’s financial situation is also helping fuel the token’s rise. Just in case you don’t know, the company raised $314 million in June to bolster its decentralized finance (DeFi) ecosystem.
He explained: “So it’s $314 million, plus the backing of FTX, which having a cryptocurrency exchange that big, that’s like [having] more money than God.”
The trader also said that large financial institutions are also starting to become interested in Solana.
“Institutional money is starting to take a interest in Solana. Osprey, they announced a Solana fund two weeks ago. They are far from the only big-money players piling into Solana right now.”
Davis also looks at the total value locked (TVL) in Solana’s ecosystem. This has exploded to over $5 billion.
The Crypto trader predicted that Solana’s TVL would continue to grow.
There are all kinds of optimistic predictions in the crypto space these days, especially regarding the price of altcoins.
At the moment of writing this article, SOL is trading in e green and the coin is priced at $205.