Solana
New cross-chain bridges could consolidate Solana’s market position
The introduction of new cross-chain bridges could consolidate that of Solana (SOL-USD) standing in the cryptocurrency market, providing new avenues for growth and utility. Developed by Zeus Network, the upcoming service is expected to seamlessly connect Bitcoin to the Solana ecosystem, converting BTC (BTC-USD) into zBTC tokens.
Solana Price Surge: What’s the Problem?
Here’s the scoop: Solana isn’t just standing; it’s very high. In recent days, it has jumped more than 10%. A mix of organic growth and some smart plays within its ecosystem have inflated its value. There has been an influx of memecoins and a solid punch from its DeFi sector, which now boasts a TVL of $3.78 billion. Not too bad. Plus, add to that the Fed’s latest interest rate decision – or lack thereof, and you get investors flocking to riskier assets like Solana, in search of better returns.
On the technical facade, Solana shows some serious muscles. It found support where it counts, that is, against the 200-day exponential moving average (EMA). Moreover, the daily RSI shows that the momentum could shift towards the bulls.
Take on the challenge
But let’s be real: it’s not all sunshine and rainbows. The introduction of new technologies such as chain bridges presents obstacles: security risks. I mean huge risks. Depending on how long you’ve been in crypto, you may or may not know the insane number of hacks, attacks, and bridge exploits in crypto.
The Poly Network smart contract bug in 2021 resulted in losses of $610 million. In 2022, the infamous Wormhole (a bridge in Solana) hack cost $326 million, and then the even more infamous Ronin Bridge attack in March 2022 was hacked for an absolutely insane $650 million.
However, if Zeus and Solana manage to achieve this without a hitch, we could be looking at a stable and safe increase in liquidity and Solana becoming a real threat to Ethereum (ETH-USD) domination.
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