Solana (SOL) broke a new record exchange rate of $103.06 on Monday after a 9.35% intraday rally as predicted by traders. The increase came after SOL announced the introduction of “Ignition,” a feature that traders predicted would go live later this week. The announcement broke out on SOL’s social media and spurred the public into believing that the feature would be about burning SOL tokens.
Solana generally relies on SOL for transaction fees and stakings. To keep the SOL supply controlled against the 500,000,000 SOL issuance, the Solana protocol burns some of its transaction fees.
Although the team did not divulge a lot of information on its Ignition teaser video, the predictions emerged because the video contained a lighter with purple flames. However, the video also had “The sky’s the limit. What will you launch?” as its caption, indicating that the predictions may not be accurate. The caption suggested that the feature may have fewer token burning episodes and more events for non-fungible tokens (NFTs) and decentralized app developers.
Judging from Solana’s past SOL burning events, Ignition should not have a landing page dedicated to it if the feature is not regarded as a token burn event. This is because there were no specialized teasers from previous burning events.
On the other hand, Solana’s 369% price growth from July 20 has made the token extremely overvalued as its present strength index is reading close to 81.
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