Solana’s 24% Increase – Banking Enthusiasm or Sustained Growth? by DailyCoin


© Reuters. Solana’s 24% Increase – Banking Enthusiasm or Sustained Growth?
  • The native blockchain token, SOL, has seen a price surge over the past week.
  • The rebound in turnover was due in part to a favorable tweet by co-founder Vitalik Buterin.
  • The launch of the Solana-based Bonk (BONK) cryptocurrency triggered a fresh surge, with the token recording a 4,424% increase within one week of its launch.

Solana (SOL) has seen a price rally over the past week, from trading in a range of $17.00 on January 13, 2023 to $21.43 at the time of writing.

The token has seen a rebound in value over the past few weeks. SOL price doubled from its initial lows in January to hover continuously around $21, until it reached $24 earlier this week. SOL has recorded a 116% increase in value so far this year, marking a rapid recovery after hitting a record low of $9.91 on January 7, 2023.

Solana 30 day price chart. Source: CoinMarketCap.

Punk or boost?

The recent spike in Solana’s trading volume has been linked to the issuance of the Solana-based Bonk (BONK) coin. The meme coin was quickly adopted by the Solana community, experiencing a “supersonic upward race with a 4424% increase just one week after launch”.

BONK’s value has been declining continuously since January 15, 2023. Despite this, Solana (SOL) has continued its upward trend since January 3, 2023, indicating a more sustained growth than the initial hype that was thought to be driving the boom.

The bounce was also partly attributed to a favorable tweet by Ethereum co-founder Vitalik Buterin, in which he said he hoped the Solana community would get a fair chance to grow.

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The Solana protocol aims to facilitate the development of decentralized applications (dApps) by integrating the Proof-of-History (PoH) consensus mechanism with the underlying Proof of Stake (PoS) system. This approach aims to increase scalability and make the platform more attractive to dApp developers. Despite the negative impact of the FTX crash on the cryptocurrency market, Solana’s original token (SOL) showed remarkable perseverance.

on the flip side

  • If the recent spike in Solana’s trading volume proves to be associated with a growing interest in the Solana-based meme BONK, this isn’t a long-term solution.
  • The data shows that the total value locked (TVL) on the Solana chain fell by 96% in 2022, with SOL currently ranked 11th by market capitalization.
  • Solana has been criticized for being too centralized and controlled in venture capital, which could limit his potential in the long term.

Why should you bother

With the after effects of the FTX crash not abating, Solana (SOL) should show sustainable growth. With dApp and PoH developments in the pipeline, Solana may soon build towards a more attractive and decentralized ecosystem.

Read more about Bonk, the first doge-themed meme currency:

Bonk (BONK): project review, recent developments, future events, community

Read about the coin that will stand the test of time:

Which coin will stand the test of time: Snowfall Protocol (SNW), Solana (SOL) or Tera Classic (LUNC)?

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