Solana (SOL) Surges to Three-Month High, Squashes Bears
The price of Solana (SOL) has skyrocketed in the early hours of Friday, reaching a three-month high of $26.84 and returning to levels not seen since July. At present, SOL has increased by 12% over the past 24 hours and as much as 26% over the last week, according to CoinGecko.
This surge has also resulted in the liquidation of more than $6.2 million in short positions overnight, as reported by CoinGlass. Solana is often referred to as an “Ethereum killer” and offers a proof-of-stake blockchain network that enables developers to create decentralized finance (DeFi) and non-fungible token (NFT) projects.
Solana’s meteoric rise is part of a broader crypto market surge, with the total market capitalization of all digital assets increasing by 4.3% in a day and adding $43.3 billion.
XRP and Bitcoin Also Experience Gains
In addition to Solana’s surge, XRP has seen an 8.4% increase in price, currently trading at $0.51. This rise can be attributed to the Securities and Exchange Commission (SEC) dropping charges against Ripple’s CEO Brad Garlinghouse and executive chairman Chris Larsen for allegedly violating securities laws.
Bitcoin has also risen by nearly 5%, bringing its price to just under $30,000. This bullish move coincides with ongoing amendments to Bitcoin ETF filings and predictions from industry experts that an ETF filing will soon be approved.
Ethereum hasn’t missed out on the rally either, experiencing a 4% overnight increase and trading at $1,615.
Solana’s Recovery from FTX Collapse
Solana, currently the 8th largest cryptocurrency with a market cap of almost $11 billion, suffered significant losses after last year’s FTX collapse. The SOL token fell by over 41% a week after the crypto exchange’s bankruptcy. However, SOL has been on the rise since then, with occasional setbacks due to the overall volatility of the crypto markets this year.
While Solana’s total value locked (TVL) reached a new high above $338 million earlier this month, it is still far from the nearly $10 billion TVL seen in November 2022.
Hot Take: Solana’s Resilience and Future Potential
Solana’s recent surge demonstrates its resilience and potential as an alternative blockchain network for DeFi and NFT projects. Despite facing challenges such as the FTX collapse and market volatility, Solana has managed to rebound and attract attention from investors.
With its strong performance and increasing adoption, Solana could continue to gain momentum in the crypto space. Its ability to provide fast and scalable solutions makes it an attractive option for developers looking to build decentralized applications.
As the crypto market evolves, it will be interesting to see how Solana competes with other established platforms like Ethereum and whether it can maintain its upward trajectory.
Disclaimer: The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.
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