Solana (SOL) and Enzyme (MLN) rally while the wider market remains flat
A rapidly growing ecosystem and recent Coinbase listings helped SOL and MLN bounce back from recent lows while the wider market trades sideways.
Significant price corrections like the one see in May inflict widespread pain for a majority of market participants and can be a death sentence for struggling projects as token holders capitulate and dump their holdings for any price offered.
While these periods are useful to help shakeout the weak hands and weed out unnecessary projects, they also offer strong performers the opportunity to stand out from the crowd and attract the attention of eager investors looking for a safe haven during choppy markets.
Two projects that have been more resilient than crypto majors and are down less than 20% from their highs established prior to the May 18 market sell-off are Solana (SOL) and Enzyme (MLN).
Enzyme benefits from the Coinbase bump
Out of the top 200 coins, Enzyme has outperformed the field in terms of bouncing back following the sell-off as the MLN token surged 150% from a low of $75.50 on June 4 to a high at $185 on June 7, propelled by a record $45 million in 24-hour trade volume.
Enzyme is a decentralized finance (DeFi) protocol designed for on-chain asset management and meant to empower investors to build, scale and monetize investment strategies that can be utilized by other members of the Enzyme community.
After a relatively quiet start to June, Enzyme began receiving more notice on Twitter beginning on June 6 with Messari analyst Jack Purdy pointing out that “even with prices down 40% from a few weeks ago Enzyme AUM are still close to all-time highs.”
While there was no major developments for the protocol as the price started to rise significantly beginning June 4, the June 8 revelation that MLN would be added to Coinbase Pro appears to be the driving force behind the tokens recent surging price demonstrating that the Coinbase bump still has the potential to move prices.
Starting today, inbound transfers for GTC, MLN & AMP are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 9AM PT on Thurs 6/10 if liquidity conditions are met. https://t.co/wWYrUIXeRT
— Coinbase Pro (@CoinbasePro) June 8, 2021
Solana rebounds from its May 19 low
The second token that quickly rebounded from the May crash is Solana (SOL), a layer-one proof-of-stake protocol capable of processing 65,500 transactions per second (TPS).
Related: Solana Labs raises $314M via private token sale as ecosystem support expands
Momentum for the project began picking up on June 2 following the announced launch of the Metaplex NFT platform which offers “a radically new approach to NFTs and NFT storefronts” on the Solana blockchain.
This announcement was followed up by a series of other project launches on Solana including the algorithmic decentralized lending and borrowing platform Solend and the decentralized, capital-efficient derivatives exchange Moët Finance.
According to data from Cointelegraph Markets Pro, market conditions for Solana have been favorable for some time.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen on the chart above, the VORTECS™ Score for SOL has been green for the most of May, with its score quickly recovering above 67 on May 24 to reach a high at 80 on June 4 as its price began to rally 30% over the next three days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
