Several altcoins, including SOL, saw price rallies and the cryptocurrency is now approaching the $100 level.
In 2022, the cryptocurrency space hit a major roadblock with the collapse of FTX, causing repercussions throughout the industry. This adversity posed challenges for Solana, one of its most prominent blockchains, interrupting its course.
Known for its innovation and technological strength, Solana had received much praise, especially from senior figures such as former FTX big boss Sam Bankman-Fried.
However, when the cryptocurrency exchange, a platform closely linked to Solana, unexpectedly crashed, it cast a dark cloud over the blockchain’s previously positive future.
Solana Emerges Strong: 800% Recovery
Today, many digital asset investors are positioning SOL as the success story of the cryptocurrency industry. This is due to its incredible recovery from last year’s more than 90% loss.
The value of SOL has seen a notable increase, rising over 800% since then. As the network benefits from significant activity and considerable demand for memecoins, Solana prices have recently shown significant growth, reaching its highest level (a 20-month peak) since April 2022.
The Solana network has seen a surge in transaction activity as traders take advantage of its speed and cheap fees to trade obscure and risky tokens known as “shitcoins” in the cryptocurrency community.
Hosam Mahmoud, research analyst at CCData, clarified that there is a direct correlation between the recent increase in SOL prices and an increase in on-chain activity on the Solana blockchain.
He cited figures from DeFi data aggregator DefiLlama, which indicated that the total value locked on the platform had increased significantly in the previous seven days.
According to Anatoly Yakovenko, CEO of Solana Labs, developers are still adding features to Solana and the introduction of new platforms and products has increased public interest in blockchain technology.
Analyst Reveals SOL Tech’s Triumphs
“Crypto is Macro Now” author Noelle Acheson has written about Solana’s revolutionary journey and the significant technological advancements achieved by blockchain. These advancements follow previous difficulties Solana faced, such as network outages and performance issues.
According to the Solana Status monitoring website, there have been no incidents since February, demonstrating the resilience of the blockchain, as Acheson points out. On December 21, the price of SOL and some other altcoins rose by double digits. As a result, short sellers suffered huge losses when their bearish bets turned out to be unsuccessful.
As the altcoin approaches a critical price threshold, SOL traders are currently seeing the largest short liquidations in the last three months. Meanwhile, Solana has reported the liquidation of short contracts worth about $13 million in the last day. Given the rising level of optimism ahead of the end of the year, this is the biggest single-day sell-off traders have seen since October this year.
Recently, the price of SOL was just over $96. Bullish signals swept the cryptocurrency market, causing a 14% rise in just one day. Several altcoins, including SOL, saw price rallies and the cryptocurrency is now approaching the $100 level.
Solana Flips BNB as it Approaches $100
Solana and Binance’s BNB are locked in a tight race for fourth place among the cryptocurrencies with the highest market capitalization. Earlier today, Solana briefly outperformed BNB but was unable to hold the position.
Furthermore, Solana’s price reached $99.50 on Binance, leaving it just $0.5 short of the $100 milestone. It is very likely that if Solana price stays above $100, it can firmly secure its fourth position. Most recently, BNB’s market cap is $41.75 billion, while Solana’s market cap is $41.44 billion.
By Audy Castaneda
