NFT Boom Powers Rally In Ether And Solana As Crypto Prices Hit Three-Month High

NFT Boom Powers Rally In Ether And Solana As Crypto Prices Hit Three-Month High
Andrew Rummer

over 2 years ago1 min

Cryptocurrency prices climbed on Friday, pushing the Bloomberg Galaxy Crypto Index to the highest level since May, as utility-based tokens like ether and Solana’s SOL led the advance. 

Friday’s gains were spread broadly across many tokens, with – as so often in crypto markets – no obvious trigger. But many commentators attributed the rally to increasing enthusiasm for non-fungible token (NFT) collectibles like CryptoPunks

That view was backed up by Friday’s price action, with tokens forming the base of NFT projects – like ether, SOL, and Cardano’s ADA – posting some of the biggest gains. Solana launched a high-profile NFT project on August 15th called Degenerate Ape Academy and its first NFT marketplace, Solsea, will go live today. 

You could argue these price moves are a sign of the crypto market moving away from pure financial speculation towards actual utility. As the chart above shows, ether – the most popular token on which to build crypto projects – is closing in on three-year high versus bitcoin – the OG cryptocurrency that has little use beyond storing value. SOL has also now overtaken dogecoin, another token with no practical use, to take the title of 7th-biggest crypto by market value. 

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