Solana [SOL] is slated to grow to be the subsequent dwelling for the Helium community. The announcement made by the Helium Basis was a part of a brand new proposal dubbed HIP 70. If accepted, it’s going to mark the beginning of a sturdy partnership between the 2 decentralized networks.
The announcement marks an necessary milestone for the 2 networks, particularly when it comes to development and collaboration. Fairspott Helium founder, Arman Dezfuli-Arjomandi highlights one of many main advantages of Helium launching on the Solana blockchain.
What am I most enthusiastic about? The staff with the ability to concentrate on constructing knowledge networks as an alternative of the novel L1 Helium blockchain.
It will unlock agility, optionality, and I can solely think about will scale back stress for everybody concerned.
— Arman Dezfuli-Arjomandi 🎈 (@rawrmaan) August 30, 2022
Will Solana’s previous stand in the best way?
Solana would profit from extra utility and adoption particularly contemplating the dimensions of Helium’s endeavor.
The selection to shortlist Solana acquired criticism in equal measure. A few of the respondents have expressed dissatisfaction with Helium’s choice to focus on Solana as its subsequent dwelling.
Why not polkadot, matic, BNB, EGLD, cardano, why solana? Which isn’t so decentralized and is down every so often. If you don’t care about decentralization simply use a traditional DB,
— Rusu Gheorghe (@RusuGheorghe3) August 30, 2022
The misalignment of opinions relating to Solana because the potential host blockchain for Helium could have an effect on the vote end result.
Then again, some argue that Solana is battle-tested and former downtimes have solely made it stronger. The upcoming neighborhood vote will determine whether or not Helium is destined to grow to be a part of Solana.
SOL’s worth motion
SOL traded at $32.36 at press time, which was a 33% drawdown from its four-week prime. It’s off to a bullish begin this week after nearly dipping into oversold territory.
The slight upside is courtesy of accumulation in the course of the weekend as indicated by the Cash Stream Index (MFI). Sufficient bullish volumes would assist a stronger restoration.
The FTX and Binance funding charges demonstrated robust upside within the final three days. This means that investor sentiment is shifting in favor of the bulls.
On the identical time, it aligns with the oversold zone retest, thus creating an alignment of bullish indicators. SOL’s worth has, thus, achieved some upside. Thereby, indicating that there was wholesome accumulation at its present four-week lows.
A few of the different observations at present supporting the bullish sentiment embody an uptick within the complete NFT trades volumes since 28 August. Enhancements within the variety of NFT trades could assist improved buyers’ sentiment.
On the identical time, whales’ stablecoin provide decreased within the final three days, suggesting that they’ve been shopping for again on the latest lows.
SOL’s present upside, at press time, was somewhat restricted. It was nonetheless a wholesome signal of accumulation after a large draw back.
A vote in favor of Helium launching on Solana would supply robust confidence for a doubtlessly larger rally.