Solana-based Altcoins Rallies by over 200%, Why?

Solana-based Altcoins
Source: Investor Times

Solana-based Altcoins

Two Solana-based altcoins, Marinade (MNDE) and Marinade Staked SOL (mSOL), were listed on Coinbase, the most popular cryptocurrency exchange in the United States, yesterday. The following day after the listing, both coins began to rise in value, with MNDE rising by over 200%.

Both Solana-based alternatives have been added to Coinbase’s “experimental asset” section. Used for volatile cryptocurrencies with low trading volumes.

Magic Eden, an NFT marketplace based in Solana, California, has adopted an optional royalty pricing structure.

Source: Coingecko
Source: Coingecko

The Marinade Finance MNDE token is the protocol’s governance token for liquid stakes. The token contributes to the Solana ecosystem’s continued decentralization. However, mSOL is a staking token that can be used in decentralized financial (DeFi) transactions. Any SOL token holder who stakes their tokens on the Marinade protocol will receive the token as a reward.

Solana-based coins have an “experimental asset” label, Why?

There have been previous allegations that Coinbase included dubious coins in their listings. The exchange has decided to label tokens that are more vulnerable than others in order to be more forthcoming with their patrons. These securities are either novel to the exchange or experience extremely light trading activity. Users are still able to buy, sell, send, and receive the token in question despite its “experimental asset” label. It serves more as a cautionary note that the asset is more volatile than standard cryptocurrencies.

Due to the novelty of the new Solana tokens on the Coinbase exchange platform, their trading volumes are currently quite low. For this reason, we classify them both as “experimental assets.”

On the other hand, Solana (SOL) and the broader cryptocurrency market are experiencing a welcome reprieve. Yet the project’s NFT performance has been subpar. DappRadar reports that the amount of NFTs traded on the SOL network dropped by half between September and October. However, while Bitcoin (BTC) is still trading above $20,000, Ethereum (ETH), the second largest cryptocurrency by market cap, has dropped below $1600.

SOL was trading at $32.25 at press time, up $0.9 (or 0.9%) in the prior 24 hours.

Source: Watcher

Disclaimer: This opinion is not meant to be taken as financial guidance and is presented merely for educational purposes. Crypted Crypto cannot guarantee that it accurately represents the views of the publication. You should always do your own research before making any financial decisions, as every investment and every trade carries some degree of risk. If you cannot afford to lose the money you invest, then you should not invest it.




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