The Solana course was able to climb more than 18 percent in the last 7 days alone.
Solana’s SOL token is back in the top ten cryptocurrencies by market capitalization, with the latest massive increase. Solana was able to beat even Polygon (MATIC) again.
In recent weeks, the price of Solana (SOL) has experienced a very strong rise. The SOL course was able to see a renewed uptick at the turn of the year 2022/2023.
At the beginning of the year, the Solana price was still US$9.85. First, the price went up to even above $10. A few days later, it topped $17.
A massive rally occurred in the middle of the month, taking the price from $16 to over $23. The price seemed to be stabilizing in recent days. After dipping slightly below $21, the price rallied above $25 yesterday.
Solana’s massive rally has once again drawn a lot of market attention, as the cryptocurrency has been the biggest gainer in recent weeks.
Below are the three reasons why Solana was able to climb back into the top ten of cryptocurrencies.
FTX Shock Countermove
A massive drop in a particular cryptocurrency can have two main consequences. On the one hand, the price can no longer recover, and the currency disappears into oblivion. This happens when confidence, and, therefore, demand in the currency, is so damaged that the price can no longer recover.
On the other hand, there may be a counter attack, as confidence in the coin returns and investors see the benefits of this coin again. Trust in Solana was temporarily disrupted because the network had ties to Sam Bankman-Fried, as well as to his companies, FTX and Alameda Research.
After a few weeks, Solana was able to regain its confidence. During this time, the network has remained stable and Solana has not been proven to have fraudulent structures.
Solana Has Clear Advantages
It is worth mentioning that, as a network, Solana has significant advantages over other cryptographic networks. This refers mainly to the massive scalability of the Blockchain, which has produced many use cases in the last few months and years.
The network is particularly present in NFTs. There, the Solana Blockchain is number two behind Ethereum. In the last few weeks in particular, interest in NFTs has increased again. This further explains the upward correction of the SOL price.
Introduction of a Meme Coin
Solana introduced its own meme coin, called BONK. Shortly after its crash, the BONK price could experience massive increases in a few hours. Many investors were encouraged to make speculative purchases through psychological tricks, such as a limited supply, and an entry price with many zeros after the decimal point.
In principle, this increase could have kicked off the Solana rally in the past weeks. Many investors were reminded of the benefits the network could offer, and that there could be major developments in the future.
By Audy Castaneda
