- Solana successfully completes Helium integration and reveals a major upside for the new addition.
- SOL struggles with sell pressure after its previous bullish breakout.
It’s been an interesting and important week for Solana [SOL], largely because of the Helium migration. The network released an update on 19 April confirming that the migration was a success, among other details.
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While the Solana update highlighted some details about the Helium migration, one stands out the most. It provided 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.
Welcome, @helium ?
The Helium Network has completed its upgrade and has finished migrating to Solana. https://t.co/nTICE0Y6aa pic.twitter.com/CjiHjsANob
— Solana (@solana) April 19, 2023
This move is also historical because it is one of the few times a project with its own layer 1 network has opted to switch and be hosted on another layer 1 blockchain.
Solana saw a momentous uptick in development activity in the last few days. This is largely associated with preparations for the Helium transition.
Source: Santiment
SOL price analysis
The eventful week was also characterized by an interesting outcome in the market which has somewhat diluted the intensity of the Helium transition. The market saw a large wave of sell pressure which largely affected the top altcoins.
Solana’s native crypto SOL was not spared either.
SOL fell by as much as 12% in the last 48 hours at press time, undermining some of the progress that it achieved after its long-term resistance breakout.
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.
Source: TradingView
The dip manifested as a slip downside in the MFI and it may indicate that most investors are still holding SOL. In addition, demand in the derivatives segment rapidly bounced back in the last 24 hours, confirming that there were still some buyers for SOL.
Source: Santiment
While the derivatives demand has recovered slightly, on-chain data indicated that there was a lack of very strong demand.
How many are 1,10,100 SOLs worth today?
In fact, SOL’s on-chain volume dropped substantially in the last 24 hours despite its uptick during Wednesday’s (19 April) trading session.
Source: Santiment
The low or limited volumes underscore SOL’s current position. Traders are still experiencing uncertainty regarding the next market move.
On the other hand, bearish exhaustion indicates that investors are still optimistic about SOL’s prospects to avoid a further selloff.
