Solana outperforms major crypto tokens this week due to multiple catalysts: Coinbase

Quick Take

  • Solana has outperformed its peers this week, posting gains while bitcoin and ether have declined during the same period.
  • Coinbase analysts have identified multiple catalysts that have supported the crypto token ranked number five by market cap.

Solana has outperformed its peers this week, rising 9% over the past seven days, while bitcoin and ether have declined by over 4% and 2%, respectively, during the same period, according to The Block's price page.

"This performance has been buoyed by a number of endogenous catalysts specific to the Solana ecosystem including major technological releases and VanEck’s filing of the first spot Solana ETF in the U.S.," Coinbase analysts David Duong and David Han said.

Multiple catalysts bolstering Solana

According to Coinbase's Weekly report released on Friday, multiple recent developments have enhanced the value proposition of the Solana blockchain. One is ZK Compression technology, which the analysis said could reduce costs on Solana, particularly for large-scale token distributions.

The analysts added that Solana's Blockchain Links also represents a development that could usher in "an improved and more universal user experience for Solana applications."

"Blockchain Links, or 'blinks' for short, enable the embedding of Solana specific actions into any website user interface. With the appropriate setup, blinks enable users to engage in a variety of onchain actions – NFT mints, USDC transfers, DEX swaps, governance proposals, and more," Coinbase analysts said.

The report also noted how fund manager VanEck filed for an exchange-traded fund that would track the price of Solana.

"I am excited to announce that VanEck just filed for the FIRST Solana exchange-traded fund (ETF) in the US," said Matthew Sigel, head of digital assets research at VanEck said in a post on X on Thursday.

Coinbase analysts said, "this development is promising regardless of its outcome."

Solana was changing hands at around $141.60 at the time of writing, having traded down 2% in the past 24 hours, according to The Block’s price page.


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About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

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