After a 9.35% intraday rally, Solana (SOL), broke the record for $103.06 exchange rate on Monday. SOL’s announcement of “Ignition”, a feature traders had predicted would be available later in the week, led to an increase in exchange rates. SOL’s social media accounts were the first to announce the announcement. The public was led to believe that the feature would involve burning SOL tokens.
Solana relies on SOL to pay transaction fees and stakes. The Solana protocol uses some of its transaction fees to keep the SOL supply under control against the 500,000,000 SOL issuance.
The Ignition teaser video did not reveal much information. However, the prediction was made because the video had a lighter with purple flames. The video had the caption “The sky is the limit.” The caption read “What will you launch?”, which suggests that predictions might not be correct. According to the caption, there may be fewer token-burning episodes and more events for nonfungible tokens (NFTs), and decentralized application developers.
Based on past SOL burning events by Solana, Ignition shouldn’t have a landing page for it if the feature doesn’t count as a token burner event. This is due to the fact that there were no special teasers from past burning events.
However, Solana’s price increase of 369% since July 20 has rendered the token highly overvalued. Its strength index is now reading close to 81.