Solana (SOL-USD) continues to struggle with the $100 price level. But bullish investors will be happy to know that seven blockchain infrastructure firms have recently added support for the Pyth Network, an Oracle service on the Solana blockchain.
These companies will Support the data providers on the Pyth Network which will assist them in maintaining their respective node infrastructures. The reason investors should be interested in this development is that it relates to the evolution of decentralized finance (DeFi). The Pyth Network aggregates off-chain data from more than 50 financial publishers across a broad cross-section of the financial sector.
The implication is clear: DeFi is continuing to evolve and blockchain infrastructure providers are increasingly looking to Solana and its solutions. For pundits, this is exactly the kind of development that should lead to the long-term strength of the project. While the technical aspects of the development are to complex for me to understand the thrust is clear. Multiple blockchain infrastructure firms are confident that Solana is a blockchain project worth partnering with.
At the same time, investors are curious to understand where Solana’s price will go given that it has struggled with the $100 level. But that isn’t the point. All cryptocurrencies are prone to volatility. As investors know, the cryptocurrency market is far more volatile than the stock market. Attempting to predict the short-term price swing of Solana based on this news is nearly impossible. But an optimistic investor should understand that the technical growth of the actual blockchain is what gives any project long-term viability. So, given that seven firms have decided to add their support for Solana, it seems that it does have the technical chops required for growth.
Again, this is exactly the kind of news that long-term bullish investors should be interested in. It is clear that the Solana blockchain will be home to a significant portion of DeFi applications in the future. And that matters.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.