Solana (SOL) continues to amaze the market with its performance. Recently, it broke the psychological barrier of $100 and reached a high of $117 in a short time. After this impressive peak, the coin has experienced a small correction and is now trading around $113. What is the reason for the recent increase and can we expect more from Solana?
Why is the Solana price rising?
Solana’s (SOL) recent explosive rise can be partially attributed to the hype surrounding meme coins. Specifically on the Solana network, the coin Bonk (BONK) has experienced impressive growth, increasing by more than 10,000%. This has significantly strengthened the attractiveness and acceptance of the Solana platform. Furthermore, the increase in the value of Solana can also be partly explained by the general recovery of the crypto market, characterized by an increase in market capitalization and more positive market sentiment.
Another significant factor behind Solana’s rise is the increase in on-chain activities. The number of daily active addresses on the network peaked at 1.26 million on December 18. The total value of tokens locked in decentralized finance (DeFi) applications has also grown significantly, with a recent increase to $1.3 billion from $400 million in November, indicating increasing trust and usage of the Solana ecosystem.
Solana’s massive growth: On its way to $120
With increasing activity and prevailing positive sentiment, Solana’s upward trend appears to be continuing unabated. The recent positive developments within the project make it likely that Solana can break the $120 barrier, which represents an increase of more than 7% from the current price. This scenario highlights Solana’s strong dynamism and significant growth potential, given the current favorable market conditions.
Good news for FTX creditors
Solana’s recent share price rise comes as an unexpected windfall for the trustees of bankrupt crypto exchange FTX. With over $6 billion worth of SOL tokens in their possession, this increase in value presents an opportunity to generate significant financial resources for creditors. Ironically, this increase comes after the collapse of FTX, an exchange that had invested significantly in Solana.
For Sam Bankman-Fried, founder of FTX, the irony lies in the fact that the increase in the value of a cryptocurrency his company had invested in only occurred after the exchange’s collapse. Had this share price rise occurred earlier, it might have helped prevent FTX’s financial collapse and Bankman-Fried might still be at the helm of his company.
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2023-12-24 15:18:58
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