Solana’s Rise: What’s Behind It?
Solana, the altcoin that recently made headlines, has seen a significant surge in value, going from $21 in mid-October to nearly $45 last week. This impressive performance comes after a brief drop below $10 during the collapse of the FTX exchange.
Data from Kaiko Research reveals that SOL’s price has surged by a staggering 115% since mid-October, making it the most traded alternative cryptocurrency on US exchanges this year.
So, what exactly is driving this surge?
Coinbase’s Role and Network Activity
A major factor in SOL’s success is Coinbase, one of the leading exchanges. On October 18, Coinbase acquired 2.2 million SOL tokens, resulting in a remarkable 35% surge in SOL’s value.
Additionally, Solana has experienced increased network activity, particularly with liquid-staking token protocols like Jito. Data shows that Jito has received $12 million in funding and has a total value locked (TVL) of around $224 million.
Solana vs. Ethereum
Solana is often compared to Ethereum as an alternative Layer 1 (alt L1) blockchain. In recent months, Solana has been outperforming Ethereum. The ratio of SOL to ETH has increased from 0.011 in September to approximately 0.025, surpassing pre-FTX crisis levels.
Challenges Along the Way
In contrast to Coinbase’s support, South Korea’s Upbit exchange decided to sell nearly 4 million SOL tokens.
Solana Steals the Spotlight
In terms of trading volumes across US-based exchanges, SOL has outperformed other popular altcoins such as Dogecoin, Litecoin, Polygon, and Ripple. This solidifies SOL’s position as the favored alternative digital asset among US traders.
In just one month, SOL has seen a remarkable 75% increase in value, establishing itself as a significant player in the crypto world.
Hot Take: The Future of Solana
With its recent surge and growing popularity, the future looks promising for Solana. The altcoin’s strong performance and increasing network activity suggest that it could continue to rise in value. However, as with any cryptocurrency, it is important to stay informed and monitor market trends to make accurate predictions about Solana’s future.
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