In a move that surprised even the most skeptical of the cryptocurrency market, Solana (SOL) demonstrated a performance that made the graphics shake. The Solana cryptocurrency has seen its value grow by more than 24% in the last 24 hours, reaching an impressive $45 at its peak.
More than a simple flirtation with volatility, Solana has seen near-stratospheric growth of nearly 80% over the past month, shaking the market and generating whispers of excitement among investors.
On quick analysis, many would think we are witnessing a classic sell-off, but under the hood of this rally there is much more going on. The current narrative painting Solana’s skies suggests that this network could, amazingly, be wearing Ethereum’s boots, with promises of surpassing it.
For those who follow closely, you know that Solana’s journey has not been a bed of roses. After the setbacks associated with FTX’s misfortune – as both entities had significant mutual investments – SOL holders saw dark times. The symbiotic relationship took a hit when FTX declined, affecting both the size of Solana’s treasury and the liquidity of its assets.
In this article, we will discuss:
Solana gains support from developers
Solana has gained support from a developer base that has grown by more than 40% per year, and the faith of true Solana enthusiasts has turned what could be an epigraph into a rallying cry. Discussions about Solana versus Ethereum became almost an echo in the Crypto Twitter chambers, with heated debates about the technical superiority of Solana’s proof-of-stake blockchain, with its speed, scalability and cost-effectiveness.
And that’s not all. Looking at past patterns of Ethereum, which saw its value rise from around $100 to $4700 after surviving a bear cycle, is being used as a lens to view SOL’s potential. Developers, these artisans of the digital world, are flocking to the platform, weaving a new future for Solana with every line of code.
“The ingredients were all there, ready for the perfect storm”, comments Patrick Felder, from Prismatic Capital, pointing to the post-FTX movements and the emergence of a classic short squeeze on the Solana horizon.
The developer community is not just a footnote in this saga. Resistance to headwinds and loyalty to Solana are evident in the 83% increase in the number of devs, according to data from RockwayX. Even Vitalik Buterin, co-founder of Ethereum, nodded recognition to the frontline soldiers of this ecosystem.
While Solana’s market capitalization still dances at just 8% of giant Ethereum, SOL aficionados see this not as an epitaph but as a promise of growth. And yes, there is still the issue of the liquidation of FTX assets, a ghost that still haunts the network. However, for Solana bulls, the network has a life of its own, and tomorrow belongs to it.
The Breakpoint conference, an in-depth event packed with important insights and announcements, served as a catalyst for this upward movement of SOL. Intriguing developments were uncovered during the conference, which took place in Amsterdam. Notable among the announcements was the launch of the first smart wallets on Solana, an innovation brought to light thanks to the concerted efforts of Fuse Wallet.
SOL price experienced a dizzying rise, rising over 20% and reaching $45. This is a milestone not seen since August 2021, a time when the cryptocurrency market was experiencing a cooldown after a period of significant warming.
At the time of publication, the price of SOL was quoted at US$44.16, up 13% in the last 24 hours.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.