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

Solana's 24% Increase - Banking Enthusiasm or Sustained Growth?

  • The Solana blockchain native token, SOL, has seen a price surge over the past week.
  • The rebound in trading value was due in part to a favorable tweet by Ethereum co-founder Vitalik Buterin.
  • Solana-based Bonk (BONK) coin launch sparks new surge, with the token recording a 4424% increase in one week from its launch.

Solana (SOL) has seen a file Prices increased over the past weekfrom trading in the range of $17.00 on January 13, 2023 to $21.43 at the time of this writing.

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

Solana 30-day price chart from CoinMarketCap

Solana 30 day price chart. Source: CoinMarketCap.

Punk or boost?

The recent spike in Solana’s trading volume has been linked to the Solana-based release BONK dog meme coin. The meme currency was fast Adopted by the Solana communityis experiencing a “supersonic ascent race with a 4424% increase just one week after launch”.

I have BONK dropped down in value since January 15, 2023. Despite this, Solana (SOL) continued to be subject to upward direction Since January 3, 2023, wIt points to more sustained growth than the initial hype that was thought to drive the boom.

Recoil is also due in part to Favorable tweet by Ethereum co-founder Vitalik Buterinstating that he hoped the Solana community would get “a fair chance to thrive.”

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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 of Negative effect on the breakdown of FTX In the cryptocurrency market, Solana’s native token (SOL) has shown 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.
  • Data appears Solana Series Total Value Locked (TVL) Decreased 96% in 2022, Currently SOL It ranked 11th in terms of market capitalization.
  • Solana has been criticized For being highly centralized and investment capital controlled, which may limit its potential in the long run.

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.

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