The Solana blockchain has been in full euphoria for several days, with SOL surpassing $100 this weekend for the first time since April 2022. Due to the record trading volume of the Solana crypto, it largely surpasses Bitcoin and Ethereum.
Solana and the comeback of the year in crypto
The Solana network continues to attract new users and investors. In the last 24 hours, SOL/USDT spot trading volume on Binance reached an impressive $1.037 billion, surpassing that of Bitcoin and Ethereum.
At the same time, the volume of SOL futures contracts on the platform exploded to $4.7 billion, again well beyond BTC and ETH. Solana thus confirms its place as the most traded cryptocurrency on Binance today.
This crazy enthusiasm around the decentralized network mechanically increases the price of SOL, which increased by more than 25% in 24 hours to reach $115. The market capitalization is now close to $45 billion, which moves Solana to the 4th place among cryptocurrencies, ahead of BNB.
New found confidence
This spectacular rally demonstrates renewed investor confidence in this ambitious project after a disastrous 2022. Remember, the SOL price fell by more than 96% between the all-time high of $260 in November 2021 and the low in June 2022.
The FTX debacle and the legal setbacks of its former boss Sam Bankman-Fried, a staunch supporter of Solano, then cast doubt on its viability. Since then, however, the resilience and vitality of Solana’s decentralized applications has restored its image.
But the resilience Solana has shown in recent months has demonstrated the strength of its fundamentals. In particular, enthusiasm for decentralized applications built on Solana continues to grow, as does the success of Play-to-Earn games such as Star Atlas.
Solana also owes its success to the dynamics of its native token ecosystem. Viral coins like BONK and Dogwifhat (WIF) have been lighting up the network for weeks. Last week, DEX weekly volume on Solana even eclipsed Ethereum volume for the first time!
So, despite the still very high volatility, the future of the “Ethereum killer” and its token SOL, which is now firmly anchored in the top 5 cryptocurrencies, seems brighter than ever. It remains to be seen whether this spectacular bounce marks a true recovery or just a blip like the cryptosphere has experienced too often in the past.
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I am passionate about Bitcoin, I love exploring the intricacies of blockchain and cryptocurrency and sharing my discoveries with the community. My dream is to live in a world where privacy and financial freedom are guaranteed for everyone, and I firmly believe that Bitcoin is the tool that can make this possible.
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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.