Solana (SOLA) has climbed above 200 US dollars, reaching a two-year high. At the same time, Solana’s market capitalization has risen to around 90 billion US dollars, the highest it has ever been. SOL is flourishing.
Solana (SOL) has stood out positively on the crypto markets for months, with the price curve recording a whopping 84% increase over the last 30 days alone. During the night, Solana has now broken through the psychologically important USD 200 mark; SOL last traded at such levels in December 2021. An interesting side effect: according to CoinGecko, Solana’s market capitalization is now around USD 90 billion, which is a record.
But how can it be that SOL’s token price is still a good 20 percent short of its all-time high of just under USD 260, but its market capitalization is already at an all-time high? Market capitalization is calculated by multiplying the number of Solana in circulation (almost 444 million) by the market price. In the last boom phase at the end of 2021/2, there were even fewer SOLs in circulation than now because, for example, holdings of early investors are only released over time. In addition, the maximum quantity of all Solana is not capped; tokenomics is planning for manageable inflation. The data service Solana Compass currently records an inflation rate of 5.4 percent for SOL, which is to be reduced to 1.5 percent in the future.
The momentum of Solana and its ecosystem is also reflected in other indicators. In the ranking of the cryptocurrencies with the highest capitalization, SOL has currently moved past Binance Coin (BNB) to third place, while the stablecoin Tether (USDT) remains excluded here. Solana is also in the fast lane in the decentralized finance (DeFi) segment and, according to DeFiLlama, the ecosystem has moved up to second place behind market leader Ethereum (ETH) in terms of the amount of capital invested. With currently a good 11.5 billion TVL for Solana DeFi, the record of USD 12 billion from November 2021 is also within reach here.
Conclusion: Solana on the rise
There are many reasons for Solana’s measurably positive development. The effects of the FTX bankruptcy appear to have been overcome and cooperation agreements with Visa and Shopify in 2023 have attracted attention. In the crypto scene, risk-tolerant investors are taking a liking to Solana meme coins such as BONK and dogwifhat (WIF). Now it is up to Solana to confirm its run – then a new all-time high for SOL could also become a reality.
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