Solana (SOL) has won back the favor of investors. The popular altcoin is up a good 180 percent over the past 30 days. There are several reasons for Solana’s momentum.
Solana (SOL) is on a roll: a look at the price curve reveals a new high for the year almost every day for the past month, with gains of a good 180% over the last 30 days. Solana is currently trading at around USD 67, the highest it has been since May 2022. But wait a minute: wasn’t there something wrong with Solana?
SOL, the former shooting star among the younger cryptocurrencies, plummeted in November 2022 when FTX and its subsidiaries had to file for bankruptcy a year ago. FTX founder Sam-Bankman Fried was a prominent supporter of Solana and is said to have invested around 1 billion US dollars in SOL. Fears have therefore been circulating since the FTX bankruptcy. Firstly, experts were concerned about whether sufficient funds would continue to be available for the further development of the Solana ecosystem. And secondly, it was unclear for a long time what would happen to the Solana assets remaining in FTX’s insolvency estate.
In the meantime, Sam Bankman-Fried has been found guilty before a jury in New York and the FTX insolvency administrators are settling the case financially. The feared massive sell-off of Solana has failed to materialize; the analysis by SpotOnChain can be found on X. According to this analysis, almost 7 million SOL from FTX’s Solana holdings have been sold over the last few weeks for a total of around 280 million US dollars. Although many millions of Solana are still stored at FTX, they are “time-locked” and can only be brought to market gradually. It is said that a large bundle of 7.5 million SOLs will not be available for sale again until March 2025.
Conclusion: Solana is pumping – will the rally continue?
Basically, Solana has now followed the upward trend of the leading cryptocurrency Bitcoin (BTC), which is also trading at May 2022 levels again, somewhat belatedly. The FTX bankruptcy thus seems to be over for Solana for the time being. The statement by Cathie Wood, CEO of Ark Invest, one of the largest US asset managers, attracted a lot of attention. “Ethereum was faster and cheaper than Bitcoin,” said Wood in relation to transaction fees and speed. “Solana is even faster and more cost-efficient than Ethereum.” In our Solana analysis from early November, we highlighted the resurgent story of SOL as the “Ethereum killer” as well as other reasons for the upswing. It looks like Solana is indeed making a comeback.