SOL, the native token of the Solana blockchain, has reached its highest price since May 2022, experiencing a surge of 22% on November 10. This impressive price increase comes despite continuous selling of SOL tokens by FTX’s bankruptcy estate. The Delaware Bankruptcy Court approved the sale of 55.75 million SOL in September 2023. Initially, there were fears of asset liquidation, but investor enthusiasm has been fueled by the realization that the sales will have a limited impact due to vested or locked tokens and a weekly sale limit of $100 million. Traders and analysts have expressed optimism about SOL’s future, highlighting its resilience during the token dump and predicting further price gains once the seller is gone.
In addition to the derivatives market driving SOL’s rally, there is evidence of growth in the Solana ecosystem. The total value locked (TVL) in Solana’s smart contracts has reversed its declining trend after six consecutive weeks. Deposits in Solana’s decentralized applications (DApps) have also seen a 10% increase in the last three days, indicating a positive trend for the network. Solana now ranks as the fourth-largest blockchain in decentralized finance (DeFi) TVL, with a 28% growth in the number of active addresses. These developments have contributed to SOL’s market capitalization surpassing that of Polygon, leading investors to question the sustainability of the current bull run. While there is no excessive leverage demand observed in SOL derivatives contracts, some fundamentals suggest limited room for further upside.
#SOL #Solana #TokenSurge #DAppGrowth #FTXBankruptcy #CryptoNews #Blockchain #DeFi
Image: https://weeklyfinancenews.online/wp-content/uploads/2023/09/solana.png
Comments are closed.