Solana [SOL], currently ranking as the fifth largest cryptocurrency by market capitalization, has faced a challenging few months. However, as the crypto market has been striving to recover following the Fed rate cuts, SOL has also shown significant improvement on its price charts.
As of the latest data, SOL was valued at $147, reflecting a 7.33% increase over the past week. Despite hitting a monthly low of $120 in September, the past week has enabled the altcoin to recover from all monthly losses, with a 3.03% increase on the monthly charts.
Despite facing tough times, Solana’s resilience is largely credited to the adoption of the Solana blockchain, particularly in the realm of Real-world asset tokenization. This increased adoption has prompted key experts to predict Solana’s potential as the future leader in RWA tokenization.
Solana’s Potential in Asset Tokenization
According to prominent crypto advocate and SkyBridge Capital founder, Anthony Scaramucci, Solana is poised to take the lead in RWA tokenization. Scaramucci argues that asset tokenization is playing a crucial role in streamlining global financial systems.
He asserts that financial markets spend $7 billion annually on transaction verification. Therefore, the adoption of asset tokenization has the potential to eliminate the need for intermediaries, thus reducing unnecessary transactional frictions.
As the wave of asset tokenization sweeps across digital financial systems, Scaramucci commends Solana for its contribution in this space, predicting that Solana will pave the way for future developments in tokenized assets.
By taking the lead, Solana is expected to facilitate smoother and more efficient asset trading compared to existing systems.
Implications for SOL
The widespread adoption and usage of a network are pivotal in driving price growth. Consequently, as the Solana blockchain gains more traction, SOL prices are likely to see an uptick.
As Scaramucci anticipates further growth for the Solana blockchain, the recent price movements could set the stage for SOL’s future gains.
An analysis by CryptoCrypto indicates that Sol is currently experiencing a strong upward trend on weekly charts, as evidenced by the positive index on the Directional Movement Index.
The positive index, standing at 27.2, surpasses the negative index at 21.3, suggesting a sustained uptrend.
Furthermore, Sol’s OI-weighted funding rate has remained positive for the past five days, indicating a growing demand for long positions, with holders willing to pay for shorts. This bullish signal reflects confidence in Sol’s future value.
This positive outlook is reinforced by an optimistic funding rate aggregated by the exchange, implying that investors expect prices to rise and are ready to pay a premium to maintain their positions.
Moreover, the open interest per exchange for Solana has been steadily increasing over the past week, rising from a low of $667 million to $891.2 million at present.
This influx of new funds illustrates a rising level of investor participation and confidence in future prospects.
In essence, although Sol has faced challenges in surpassing higher resistance levels, there has been a notable shift in market sentiment. Therefore, if the current sentiment persists, an attempt towards the stubborn $162 resistance level is likely on the horizon.