Solana (SOL) Surges Past $50, Nearing USDC Market Cap
The price of Solana (SOL) has skyrocketed, reaching over $50 per coin and closing in on the market capitalization of USD Coin (USDC), which currently stands at $23.9 billion. SOL’s market cap has increased by more than $3 billion in just one day, reaching $21 billion according to CoinGecko.
As of now, SOL is trading at $50.61, marking a nearly 9% increase in the past 24 hours and a 24% increase over the past week. Over the last 30 days, SOL has seen a remarkable 127% surge, outperforming other major cryptocurrencies.
Experts attribute SOL’s resurgence to short sellers exiting their positions and increased interest from major players like Visa and Shopify. These developments have helped boost confidence in the Solana blockchain, known for its speed and cost-effectiveness compared to competitors like Ethereum.
Short Squeeze and Recent Growth
SOL had previously suffered from the fallout of FTX exchange’s collapse, leading to a significant drop in its price. However, recent partnerships with Visa and Shopify have contributed to its recovery. Additionally, increased short-selling activity temporarily impacted SOL’s price but ultimately resulted in a short squeeze, propelling the coin’s value upward unexpectedly.
Despite its recent growth, SOL is still down over 80% from its all-time high of $259 in November 2021. Nevertheless, the entire crypto market has been performing well, with major coins like Bitcoin hitting an 18-month high on news of potential SEC approval for a spot crypto ETF for American investors.
Hot Take
Solana’s remarkable surge demonstrates the resilience of the cryptocurrency market and the potential for rapid recovery even after significant setbacks. With increased interest from major players and favorable market conditions, SOL has positioned itself as a key player to watch in the crypto space.
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