Solana Sees Momentous Uptick in Development Activity in Preparation for Helium Transition
Solana, a project with its own layer 1 network, has made history by opting to switch and be hosted on another layer 1 blockchain. The project has seen a significant increase in development activity in recent days, largely associated with preparations for the Helium transition. The network released an update on April 19 confirming that the migration was a success, among other details. One standout detail highlighted in the Solana update was a comparison of Helium’s operating costs when minting NFTs, based on a snapshot taken earlier this month. According to the comparison, Solana NFTs were much cheaper to mint compared to Polygon and Ethereum. The Helium migration is notable for several reasons, including its historical significance and the impact on SOL, Solana’s native cryptocurrency. Here’s a closer look at the SOL price analysis:
SOL Price Analysis
The eventful week for Solana was also characterized by an interesting outcome in the market, which somewhat diluted the intensity of the Helium transition. The market saw a large wave of sell pressure that largely affected the top altcoins, including SOL. At press time, SOL had fallen by as much as 12% in the last 48 hours, undermining some of the progress it achieved after its long-term resistance breakout. However, the Helium transition did not yield a noteworthy impact as far as investor sentiment was concerned. The selling pressure has notably slowed down and may likely give way to more recovery. SOL exchanged hands at $23.53, at the time of writing. The dip manifested as a slip downside in the MFI, which may indicate that most investors are still holding SOL. Additionally, demand in the derivatives segment rapidly bounced back in the last 24 hours, confirming that there were still some buyers for SOL. In summary, while the SOL price was impacted by the recent sell pressure, the Helium transition remains a significant moment in Solana’s history and highlights the potential benefits of switching to a cheaper and more efficient layer 1 blockchain.
