Thursday, May 23, 2024

Solana (SOL) Soars Over $60, Marking a Significant Milestone Since May 2022

SOL’s Phenomenal 145% Rally: A Deep Dive into Solana’s Weekend Market Surge

Last weekend, Solana (SOL) experienced a new surge in its market value, with prices surpassing $60 for the first time since May 2022.

According to the Santiment analytics platform, the increase in SOL was due to traders’ FOMO about missing out on the impressive rally that Solana has been undergoing in the last month, surging more than 145% in this period, fueled by a positive sentiment not seen in over a year.

Will Solana continue its upward rally?

Solana’s price increase may be attributed to factors beyond FOMO, including the launch of new projects on the Solana blockchain and increased adoption among institutional investors.

However, the Solana futures’ financing rate, currently at 0.5% weekly, suggests a prevailing interest among investors or traders in long positions.

Similarly, Solana has positioned itself as the fourth-largest blockchain in total value locked (TVL) for decentralized finance (DeFi), with a 28% growth in active addresses.

Despite having a similar TVL to Polygon, Solana’s market capitalization ($27.3 billion) is almost three times greater than Polygon’s ($7.6 billion), according to CoinMarketCap.

Solana regains investors’ confidence

The Solana network has recently addressed some performance issues, restoring investor confidence that seemed lost, especially after its association with FTX and its former CEO Sam Bankman-Fried (SBF), who was sentenced to prison and awaits a verdict that could result in more than 140 years of imprisonment.

FTX held 55.75 million SOL in its reserves in addition to funding projects related to its blockchain. However, FTX creditors were recently approved by the Delaware bankruptcy court to gradually sell all their tokens to avoid affecting the SOL price, which has been continuously rising since the beginning of last month.

Therefore, with this upswing, Solana positions itself once again as one of the leading blockchains and cryptocurrencies by market capitalization. Experts anticipate that this bullish trend can be sustained if the positive sentiment persists and Solana continues to expand its decentralized application ecosystem. However, if the crypto market has taught us anything, it is to exercise caution in the face of such bullish movements.

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