Solana’s Impressive Rally: Unraveling the Factors Behind the 20% Surge
Solana, the blockchain network, witnessed a remarkable surge of approximately 20% in the final days of September and the early days of October. This sudden upswing has captivated the attention of investors and enthusiasts, sparking intense discussions regarding the underlying reasons.
One pressing query among observers is whether this surge in SOL’s value is directly linked to Bitcoin’s performance during the same period or if distinct factors are propelling SOL’s price independently of Bitcoin’s movements.
Before this surge, SOL faced challenges, notably the U.S. court’s decision to allow the sale of $1.3 billion worth of SOL from the bankrupt exchange FTX. This development raised questions about the connection between SOL’s recent price surge and Bitcoin, prompting scrutiny of other potential contributing factors.
Solana: Challenges and Market Allure
The Solana (SOL) blockchain network, despite facing recent challenges, has garnered substantial attention and demand in the market. Despite the lackluster price performance of its native token, the proof-of-stake (PoS) network utilized the bear market to enhance its technological capabilities and establish crucial alliances with significant entities in the traditional banking sector.
The bankruptcy court implemented measures to mitigate the adverse impact of FTX asset liquidation, mandating the sale of assets through a financial advisor in weekly installments, adhering to predetermined regulations.
At the time of writing, SOL was trading at $23.43, experiencing a minor 0.3% decrease in the last 24 hours. However, it recorded a substantial 18% rally in the past seven days, as per data from crypto market tracker Coingecko.
SOL Liquidity Surges With Enhanced Network Stability
Nansen, an on-chain analytics firm, recently published a report on Solana, emphasizing its key strengths and potential. Solana, known for its cost-efficiency and high-speed transactions, earned the moniker “The Ethereum Killer.” It boasts a transaction processing speed of over 3,000 transactions per second, nearly 30 times faster than Ethereum.
The chain’s liquidity improved significantly due to the drastic increase in network stability. Currently, the Total Value Locked (TVL) in terms of SOL stands at $27.12 million, more than double its value at the beginning of the year.
Solana’s Rise Fueled by DApps And NFTs, Aiming for 5th-Largest Crypto Spot
The surge in SOL’s value was further amplified by the growing adoption of decentralized applications (DApps) and the increasing volumes of nonfungible tokens (NFTs) on the Solana blockchain.
SOL’s current price is striving to establish a support level at $23, aiming to solidify its position as the fifth-largest cryptocurrency (excluding stablecoins) in terms of market capitalization.
Meanwhile, recent updates to Solana Compass unveiled details about activities on the Solana network, particularly during the 512th epoch. The website tracking SOL staking activity indicated that approximately 19.637 million SOL coins were unstaked during this period.
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