The native cryptocurrency of the Solana network, SOL, experienced a 7.2% surge on May 6, reaching $156 before settling at $152, marking a 3.8% increase for the day and a 12% rise over the week. This positive movement can be attributed to several factors, including a favorable report from a leading investment bank, increased usage of the Solana network, and the introduction of interoperability features on a major decentralized exchange.

Despite SOL's recent gains, it faces stiff competition, particularly from BNB Chain, the third-largest cryptocurrency by market capitalization. The gap between SOL and BNB Chain narrowed to $18.4 billion after reaching a 10-month peak of $28.5 billion on April 30. The intensifying competition among blockchains focusing on decentralized applications (DApps), coupled with persistent issues like failed transactions on the Solana network, pose challenges for SOL's performance.

Various bearish factors, such as outflows from U.S. spot Bitcoin exchange-traded funds (ETFs) and regulatory actions against cryptocurrency services, add to the challenges SOL faces. However, despite these obstacles, SOL's 12% weekly gains are noteworthy, buoyed by positive sentiment from a recent report by asset manager Franklin Templeton titled "Solana: Accelerated Adoption."

Moreover, the Solana network has witnessed increased activity and deposits, with its total value locked (TVL) reaching its highest point since October 2022. This growth, along with ongoing developments focusing on interoperability and reliability, suggests a growing investor interest in SOL, despite the uncertain sustainability of its price above $150.