Solana Sunday: Interoperable Tools and Positive Price Movements
The Solana network has faced its fair share of criticism during this recent crypto crash with lawsuits and accusations of being centralized. Yet, the Solana ecosystem is still thriving. Traders continue to see value in the blockchain; believing it is one of the best competitors against Ethereum.
Silk NFT
Silk NFT is a recent collection that just launched on the Ethereum network, so why is it generating buzz on an article focusing on Solana?
Well, the token offers a variety of powerful tools that traders can use to snipe, sweep, and mint tokens on a large scale. These tools are generally locked behind high-priced barriers because of their ability to provide immense value to traders.
One of the unique features of this Ethereum-based tool is that it offers interoperable support, meaning that the tools also work for tokens and collections on the Solana network. this bridges the gap between the two cryptocurrencies.
What is Interoperability
Interoperability is when networks are capable of interacting with each other. This is fairly common for many cryptocurrency tokens such as USDC which have their tokens hosted on a variety of networks and allow bridges between networks to be built.
However, NFTs are still treading these new waters and Silk is one of the biggest tokens to do so. While the token is built on the Ethereum network, its capabilities are still beneficial for Solana traders and something that will help spur activity for both blockchains.
Cooperation or Competition
Whether Solana and Ethereum are true rivals or not, their existence as blockchain networks means that they are both fighting on the same side of web3 adoption.
Although they are motivated to compete against each other, providing building blocks that support each network allows for both ecosystems to grow as a team.
While we certainly won’t see the companies become best friends, it is safe to assume that these types of interoperable projects will only enhance the flow of tokens on respective blockchains.
It also shows that there is a future where these networks might be able to coexist on the metaverse where interoperability will be necessary for success.
Positive Price Movement
Silk’s tool set couldn’t have come at a better time either. The price of Sol has steadily begun climbing back upwards from under $30 per token to above $40. This slow climb upward shows that traders on the Solana network have refused to leave just like traders on the Ethereum network.
Many Solana based tokens such as DeGods and Okay Bears still hold considerable value. As such, when the price of Sol dropped as it did, many traders began taking advantage of the massive discount and stocked up on their liquidity.
Now that a powerful set of minting tools has become available for the Solana network, the prospect of new and exciting projects on Solana is looking favorable.
If favorable price movements and powerful utilities continue to happen, Solana will quickly see a jump in new communities which are motivated to build new, innovative projects.
