SOLANA REACHES NEW PEAK IN 2023 – UNCOVERING THE DRIVING FACTORS

Solana’s Rise on November 10, 2023

Solana’s native token, SOL, experienced a remarkable 22% surge on Nov. 10, surpassing $54 for the first time since May 2022. This upward movement coincided with the sale of SOL tokens by FTX’s bankruptcy estate.

• Some bankruptcy tokens are vested or locked, possibly contributing to investor enthusiasm for SOL’s price gain.
• A $100 million weekly sale cap is part of the FTX liquidation plan.

Since November 2021, when SOL reached its all-time peak of $260, futures open interest has risen to $745 million, driven by a substantial 39% weekly gain.

Solana’s Milestone in 2023

Solana has recently achieved a significant milestone in 2023, hitting a new high. This development follows a rally in cryptocurrencies, including major digital assets showing an increase in market value. While Solana has been gaining traction since events around Bitcoin ETFs, its recent price surge suggests an independent rally is underway.

Solana’s previous highest price was recorded in the second quarter of 2022, driven by factors such as the adoption of DApps. The recent surge can be attributed to various factors, including its connection to the collapsed crypto exchange firm, FTX, which went bankrupt last year.

Solana’s Rally to a New 2023 High

SOL, Solana’s native token, exhibited an impressive rally, gaining 22% on November 10. The surge propelled SOL’s price past the $54 mark, a level not seen since May of the previous year. Currently, Solana is priced at $55.47, marking a 39.12% increase in daily trading volume and a yearly surge of 223.03%.

The rally is attributed to the Delaware Bankruptcy Court’s approval of SOL sales related to the failed crypto exchange FTX. The court approved the sale of FTX assets, including 55.75 million SOL tokens, in September 2023.

Enthusiasm for SOL’s market price increase may be linked to the possibility that some tokens from the bankruptcy proceedings might be locked or vested. As part of the FTX liquidation plans, a weekly sale limit of $100 million has been set, providing a sense of relief for investors.

Comments from the digital space, including Bluntz, an independent crypto analyst, highlight the ongoing sale of SOL by FTX and its impact on the market.

Crypto Rally This Week

SOL’s price came close to the USD Coin (USDC) market cap, with a 17.3% increase in the past 24 hours. Experts speculate that its market movement is influenced by sellers exiting their positions in a short squeeze.

Solana achieved a record 39% weekly gain, pushing its futures open interest to $745 million, a level not seen since November 2021.

Other cryptocurrencies, including Ethereum (ETH), also experienced a rally this week. ETH saw a 14% weekly spike, surpassing $2,000, driven by the Nasdaq filing indicating BlackRock’s intention to turn its iShares Ethereum Trust into a spot Ethereum Exchange-Traded Fund (ETF).

While ETH outperformed bitcoin on Friday, it experienced a slight decline in the past 24 hours. Bitcoin rallied by 1.34%, reaching a market price of $37,095 at the time of writing. However, this rally by major cryptocurrencies has not significantly affected altcoins, with most recording a decrease in price after the release of the 19b-4 filing.