Should You Buy SOL? Solana Price Prediction Surges as SOL Blockchain Attracts a Wave of New Users Amidst High ETH Gas Fees
Solana (SOL), a blockchain platform known for its scalability and low transaction fees, has recently gained significant attention as it attracts a wave of new users.
The surge in interest comes as Ethereum (ETH) gas fees remain high, prompting many users to explore alternative options.
The growing popularity of the Solana blockchain has led to speculation about the future price of its native cryptocurrency, SOL.
Investors are now contemplating whether it is a good time to buy SOL, as its price prediction shows signs of upward momentum.
In this update, we will explore the reasons behind Solana’s rise in popularity, its potential advantages over Ethereum, and the factors that could influence the future price of SOL.
Solana (SOL) Price Bearish, Adoption Growth Sparks Recovery Hope
Despite positive developments in the Solana network, the performance of its native cryptocurrency, Solana (SOL), has been lackluster, showing a persistent bearish bias.
This downward trend can be attributed to various macroeconomic factors, including uncertainties surrounding the US debt ceiling and discussions on global crypto regulations.
However, there is hope for a turnaround as the SOL blockchain attracts a significant influx of new users seeking an alternative to Ethereum’s high gas fees.
The growing adoption of Solana’s network could potentially support the price of SOL and contribute to its recovery from the ongoing downturn.
Impact of High ETH Gas Fees on Solana (SOL) Coin Price and Adoption
As mentioned previously, the surge in Ethereum gas fees has prompted users to seek alternatives like the Solana network for faster and more cost-effective transactions.
The rising popularity of the meme coin Pepecoin (PEPE) has contributed to the soaring transaction costs on the Ethereum network.
The daily median gas price, representing transaction fees, has reached a 12-month high of 87 gwei, prompting users to turn to Solana for its efficiency and cost advantages.
Ethereum’s Median Gas Fee Surges to 12-Month High as PEPE Frenzy Grips Market— Ranger IO (@OxLeon_JPEG) May 10, 2023
By CD Read more: CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
Users pay the fees, measured in fractions of ether known as GWEI, to execute transactions on the smart contract blockcha… pic.twitter.com/9IELUljE7T
Therefore, the shift in user preference and the growing adoption of Solana can positively impact the price of Solana (SOL) coins, aiding in their recovery from the current downturn.
Potential Impact of Hong Kong’s Regulatory Framework on Solana (SOL) Coin Price
The regulatory landscape in Hong Kong has intensified competition among Ethereum alternatives, and Solana (SOL) is among the cryptocurrencies expected to be directly impacted, alongside Bitcoin (BTC) and Ethereum (ETH).
This development has the potential to positively influence the price of Solana.
Integration of AI with Solana Blockchain and its Potential Impact
Solana, a renowned blockchain network, has made a noteworthy announcement regarding integrating artificial intelligence (AI) through a ChatGPT plugin.
This groundbreaking move establishes Solana as the first Layer 1 blockchain to incorporate AI in such a manner.
With the plugin, users can seamlessly interact with Solana data and protocols, simplifying activities like purchasing NFTs, transferring tokens, and accessing transaction information.
This development is anticipated to enhance the usability and comprehension of the Solana network significantly.
$SOL is integrating #Chatgpt plugin.$RNDR is going to migrate to #Solana by EOY and going to integrate 3 LLM's like ChatGPT into the #RNDR network.— D0c Crypto ⭕️ (@TheRealD0c) May 23, 2023
@RenderToken will be burned based on usage of the network.
ChatGPT uses an insane amount of GPU power.
Deflationary $RNDR EOY. pic.twitter.com/jp11q1OwzS
Furthermore, the Solana Foundation has launched an AI accelerator program targeting university students and expanded the funding for an AI-focused strategic grants program.
These endeavors seek to stimulate research and development of machine learning models that interact with Solana protocols securely and transparently.
The increasing interest in AI within the Solana network is a testament to its high-speed transactions, low fees, and user-friendly environment.
As a result, the influence on the price of the Solana coin remains uncertain. Still, it is anticipated to generate more attention and foster the ongoing expansion of the Solana ecosystem.
Solana Price Prediction
Solana (SOL) is currently trading bearish, finding support at the $19.40 level.
The downtrend is confirmed by the formation of a descending candle pattern and a downward trend line around $20.15.
A close below this level may continue the downward trend.
Resistance is expected around $19.40, while support can be found at $18.75, with a potential target of $18.5157.
Monitoring the $19.40 level is crucial for determining the continuation of the bearish trend.
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Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.