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- Solana (SOL) is one of the tokens leading a market bounceback and has registered 8 percent gains to trade back over the $60 mark for the first time in nearly two weeks.
- According to crypto analysts, the rise of SOL is down to the continued decoupling of the token from the FTX debacle and some solid progress on the technical front.
The crypto market has bounced back in recent months from a bear market that eroded most of the market’s gains earlier this year. One of the best-performing coins has been Solana, and in the past day, SOL has clocked the same kind of upward trajectory that led to a 345% surge in the past 12 months.
SOL is trading at $60.67 at press time, surging by 8.8 percent in the past 24 hours. This rise stems from a myriad of factors, not least of which is skyrocketing demand among investors; in the past day, the trading volume has shot up 62 percent to hit $1.9 billion.
According to one market expert, Solana’s rise is a consequence of a steady rise in capital inflow into most cryptocurrencies. Marouane Garcon, the cofounder of perpetual futures exchange Real-World Asset Exchange told one outlet:
The recent price surge of cryptocurrencies like Bitcoin, Dogecoin, and Solana can be attributed to a steady influx of capital into the crypto space. With the longest streak of asset inflows in nearly two years, there seems to be renewed momentum and greater liquidity across crypto markets.
Other experts share this view. This includes Aaron Golbin, the founding partner at LvlUp Ventures, a pre-seed and seed-stage VC firm. He says that economic concerns, which have had a great bearing on the market performance throughout the year, are “slightly dissipating due to talks of a soft landing being a real possibility.”
He also credited the positive market movement to “the general excitement and developments in the crypto and web3 infrastructure and product development.”
Solana Decoupling From FTX, Strong Technical Indicators
While some experts point to the general market performance, others believe that Solana has its merits that have led to its strong bounce. One of these, according to Tim Enneking, is the decoupling of the token from Sam Bankman-Fried’s exchange in what he described as “a post-FTX relief rally.”
SOL was closely tied to FTX and was SBF’s favorite coin—he once described it as “the next Bitcoin.” When the exchange collapsed last November, SOL got some backlash from the investors and lost 75 percent of its value within days of the collapse.
Tim, the managing director of California-based hedge fund Digital Capital Management, says that investors are slowly realizing that the link to FTX is “not existential” for SOL and confidence in the token is returning.
For Pierce Crosby, the team behind Solana has also played a big part. Crosby is the general manager of Trading View, a $3 billion analysis platform that attracts over 180 million users monthly. He stated:
Solana team is quite strong and thus, you’re seeing a bit of a comeback in general market sentiment around the project. […] am very optimistic purely based on meeting some of the team and understanding their long term vision.
