Solana has been working towards improving its offerings and making its network more attractive to developers while rivaling the Ethereum blockchain. Those efforts have so far had a significant impact on its native token SOL which is currently one of the best performing cryptocurrencies today.

Solana is currently trading at $105 after rallying by 14% in the last 24 hours at the time of this press and it has also achieved an impressive 44% gain in the last 7 days. The cryptocurrency has maintained a parabolic trajectory since July which saw it set new all-time highs a few days ago but a major development on the network has fueled more investment into Solana, allowing it to rally to a new all-time high of $106.91.

Source: Binance

SOL still has a lot of room for more gains considering that it is still not overbought according to the RSI. Its trading volume today is considerably lower compared to the previous major price pump. An increase in volume will likely allow the cryptocurrency to set new all-time highs. Solana has achieved its current price level with a market cap of $30 billion which is significantly lower than rivals such as Ethereum or Cardano. This means it possibly has a lot of potential to unlock since it has a low circulating supply at just 290 million tokens.

What is causing Solana’s bullishness?

SOL owes its impressive price action to a recent announcement that revealed Solana’s collaboration with Chainlink. The partnership allows the Solana blockchain to access on-chain data through Chainlink which provides oracle services designed to make it easier for DeFi platforms to receive vital data. The integration of Solana with Chainlink’s oracle services is a big deal for the crypto market because it will make the network more reliable and efficient.

The development will also make it easier for Solana to compete more effectively with rival networks such as Ethereum. Investors believe that the integration will make Solana a more attractive blockchain to developers looking for a more affordable, fast, and robust blockchain network on which to roll out their decentralized offerings. Consequently, there was a surge of buying pressure that was enough to push the cryptocurrency to new highs.

It is still not clear whether Solana’s new upgrade will increase network demand significantly but such a major improvement will likely make it a more appealing network. If that is the case, then it will likely attract more crypto projects, especially in DeFi and NFTs. The more that projects launch on Solana, the more the demand will be for the SOL token and subsequently the better its price action. This will likely be the case especially now that the DeFi world is booming.

The actual growth might be underwhelming when you consider that there is more competition in the market now than ever before. Many of Solana’s top rival blockchain networks have also been implementing upgrades that will increase their competitiveness. On the other hand, there has also been an increase in the number of companies and crypto projects that are planning to launch in the decentralized world.