Solana Price Prediction as Magic Eden Valuation Rises to $1.6 Billion

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Solana’s price has risen for the past five consecutive days as investors continue to buy the coin’s decline. The rally accelerated after major news in its ecosystem. It is trading at $37, around 40% above its low from last week.

Magic Eden now valued at $1.6 billion

Solana is a top blockchain project that is well known for its speed and regular crashes. In recent months, the number of well-known applications on its network has increased. Some of the most popular projects in its ecosystem are Solend, Brave, StepN, and Audius.

Solana’s price rises as investors cheer the news that Magic Eden has raised $130 million even as the NFT winter continues. The company raised funds at a valuation of $1.6 billion, ten times higher than in March this year.

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The increase comes at a time when the NFT industry is causing concern. Some analysts believe it is a slowly bursting bubble. Also, the total volume of all NFTs traded daily has dropped sharply. Additionally, most people who bought NFTs are now sitting on heavy paper losses.

Magic Eden is disrupting the NFT industry by making it easy and cheap to purchase various collections. Some of the most popular Solana NFTs in its ecosystem include Primates, Okay Bears, Yeah Tigers, and Udder Chaos, among others.

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According to its website, the total volume of NFTs traded in its ecosystem was worth over 116,000 SOL, which equates to over $4.3 million. Magic Eden, which is already profitableis expected to generate over $100 million in revenue this year.

Solana’s price is also rising after Solend DAO voted to liquidate some of the funds belonging to a large whale. The concern is that the whale has deposited a small amount and is borrowing millions more. The protocol would have liquidated 20% of these funds if the price of SOL had fallen to $22.30.

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Solana Price Prediction

The daily chart shows that Solana’s price has rallied in recent days. He managed to jump more than 40%. The coin remains below the 25- and 50-day moving averages while the MACD is slightly below the neutral level.

Therefore, while this recovery is welcome, it is likely that SOL price will resume its downtrend and retest last week’s low.

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