Solana (SOL) and Cardano (ADA) in Correction Mode – Daily Outlook - Forex News by FX Leaders

Solana (SOL) and Cardano (ADA) in Correction Mode – Daily Outlook

Posted Tuesday, January 18, 2022 by
Arslan Butt • 2 min read
  • ADA/USD closed at $1.6015, after placing a high of $1.6034, and a low of $1.3878
  • The main reason for this is that Solana is one of several digital assets that has experienced significant recovery this week
  • The Solana blockchain hosts more than 400 successful Defi projects, and it also provides some of the industry’s fastest transaction speeds

Solana (SOL) – A Daily Outlook

SOL/USD closed at $139.824, after hitting a high of $148.260, and a low of $137.144. Despite positive developments surrounding its ecosystem, SOL/USD dropped sharply and reversed its course on Monday, after three days of being green. A recent statement by the Bank of America claims that Solana has what it takes to become the Visa of the cryptocurrency space. The digital asset strategist of the bank, Alkesh Shah, has high hopes for the altcoin.

 

SOL/USD
The main reason for this is that Solana is one of several digital assets that has experienced significant recovery this week. Most digital assets slipped last week, with Bitcoin briefly falling below the $40,000 level. According to Shah, the ability of Solana to provide high throughput, low costs and ease of use results in a blockchain that is optimized for consumer use cases, like micropayments, Defi, NFTs, decentralized networks (Web3) and gaming.

The Solana blockchain hosts more than 400 successful Defi projects, and it also provides some of the industry’s fastest transaction speeds. For example, the network can process about 65,000 transactions per second, with an average transaction fee of $0.00025. It is also relatively decentralized and secure.

Furthermore, the former heavyweight world champion, Mike Tyson, also known as “Iron Mike,” is anxious about how high the price of Solana will go. Recently, he announced his all-in support for Solana, and now, a few days later, he has shown curiosity about the future movements of Solana.

On January 15, Mike Tyson tweeted, “How high do you think SOL will go?” Surprisingly, he received a series of mixed reactions from over 2.4K people. However, none of the predictions made by his followers were serious. Tyson’s support also added some positive momentum to the SOL/USD environment, but the crypto remained under pressure on Monday, probably because of the prevailing negative market mood.

Cardano (ADA) – A Daily Outlook

ADA/USD closed at $1.6015, after placing a high of $1.6034, and a low of $1.3878. ADA/USD continued its positive momentum for the 4th consecutive session and surged to its highest level since December 2021.
In the previous 24 hours, ADA prices have jumped about 13% ahead of the launch of SundaeSwap, the first DeFi exchange on the Cardano blockchain. On Sunday, the project developers confirmed that SundaeSwap would launch as a fully functional beta DEX. After Tuesday, projects will create trading pools for their tokens.Like other decentralized exchanges (DEXs), SundaeSwap uses smart contracts to match token trades between users and distribute a portion of the trading fees back to the investors who provide the platform with liquidity. This process is known as “yield farming.” Users of the exchange can earn SUNDAE rewards in the first six months of the launch.

Following this news, the transaction volume on the Cardano blockchain surpassed that of Ethereum and pushed the prices of ADA/USD higher. Data from Messari proposes that the daily transaction volume on Cardano has reached the $7 billion mark and exceeded the DTV of around $5.4 billion on Ethereum. However, both networks remained below Bitcoin’s $16.8 billion. This news put further upward pressure on the prices of ADA/USD and pushed them to their highest level in one month.

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