What happened
The value of cryptocurrency Solana ( SOL 8.03% ) jumped as much as 9.7% in the last 24 hours as of 4:40 p.m. ET on Wednesday as investors poured into the token. And Solana is up big while most of the rest of the crypto market is down slightly today.
So what
The biggest news of the day is that OpenSea is opening support for Solana NFTs in April. OpenSea is by far the largest NFT marketplace today with a $13 billion valuation and over $3 billion in transactions in a good month, but thus far it has not welcomed the Solana blockchain.
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One of the theories is that OpenSea opening to Solana will allow much higher-valued NFTs on Ethereum ( ETH 0.12% ) to be compared to Solana NFTs, which often trade for a fraction of the price. It also opens up more well-heeled buyers of NFTs to the booming blockchain. Adding money and users should be good for Solana in the long term.
Now what
I like this news broadly for Solana but don’t know how it will impact the cryptocurrency in the long term. If buyers are just getting into NFTs, it might not drive up the value of the underlying cryptocurrency at all. That said, it’s a positive to have more users in the ecosystem, and that should be good for Solana’s blockchain over the long term.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.
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