Solana's price recovered 10% this week, after positive developments in its ecosystem.
Jito Labs announced an upcoming restaking solution for Solana, which may have boosted investor interest.
A new cross-chain bridge between Bitcoin and Solana is also expected in Q3 2024.
This bridge will allow users to convert Bitcoin to zBTC tokens, which are usable on Solana.
Solana is attempting to regain composure, and likely trend towards $170 or higher
Solana is making a very interesting attempt to recover from the general market slump that swept through the later part of April.
This notable recovery is directly linked to several positive developments in the Solana ecosystem, amid the generally favourable developments for crypto in the US economy.
If you are considering jumping in on the Solana train before it leaves the station, here are a few things to take note of.
This week, on 2 May , Solana recovered by a staggering 10%, when the bulls saved it from plunging below the previous $116 local low.
This recovery gave the cryptocurrency a boost up to the $135.88 ($136) zone, making Solana one of the best-performing cryptocurrencies on Thursday.
As per the positive developments that may have spurred this growth, we have the recent reports from Jito Labs, about an upcoming restaking solution to be deployed on the Solana network.
The Jito-Solana merger
According to Jito Labs' announcement, the services offered by this new restaking platform are set to rival the massive success of EigenLayer on the Ethereum network.
There have been no further reports on the details of this new platform. However, this is set to be massive for Solana’s price, explaining the resurgence of investor interest in the cryptocurrency.
We can even see this growth in more than Solana’s price.
According to DefiLlama the TVL of the Jito network has shot up from 30 million in September 2023, to around $1.4 billion at the time of writing.
During the week, there were also reports of an upcoming cross-chain bridge project between Bitcoin and Solana, which is set to release in Q3 of 2024.
This new bridge project is heralded by the Zeus Network, which is currently working on the“Zeus Program Library” (ZPL) system in collaboration with the Apollo bridge protocol.
The ZPL asset ecosystem
Per the announcement, the new bridge upon launch, will allow users to convert their Bitcoin into zBTC tokens, which can then be wrapped by the ZPL and then used seamlessly within the Solana network.
In essence, users will be able to spend, send and convert their Bitcoin, right on the Solana network.
This new development is set to increase the adoption, TVL, price and daily active users of the Solana network by a massive margin, leading to a higher demand for $SOL by Bitcoin users.
As shown by the snapshot below, the bears attempted to push Solana further down below the symmetric triangle.
However, the bulls swung into action, pushing the cryptocurrency back upwards into the formation.
Solana’s price performance
As it stands, Solana is currently attempting to establish solid footing inside the formation once again.
Overall, if the bears are unable to push Solana below the $116 support, investors can keep an eye out for a break above the local high of $160.
A break above $160 would make Solana poised to travel further upwards and retake $170 or even higher, since breaking below on 12 April.
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