Why Is Solana (SOL) Increasing by 68% Weekly

Solana (SOL) is back on track with a 68 percent weekly gain and a good 140 percent year-to-date gain. What’s driving Solana after SOL was ticked off by the FTX crypto exchange crash?

Read more about Solana and why the cryptocurrency is increasing with our companion app. The Born2Invest mobile application is bringing all the crypto and business news from trusted sources to a single screen so you can stay on top of the market. The application is aggregating the most important and breaking news from relevant websites, the list is always revised and updated with new resources. 

Crypto 2023 is off to a much better start for Solana (SOL) than widely expected

As recently as New Year’s Eve, Solana faced a thoroughly sobering year, which was marked by the bankruptcy of FTX, Alameda Research and other backers from Sam Bankman-Fried’s crypto empire. But in the two weeks since, SOL has been experiencing a rally, a good 140 plus over the last 14 days proving new tailwinds for Solana, with 68 percent weekly gain having the trend on its side.

One of the main reasons for Solana’s momentum is the successful launch of the memecoin BONK in the ecosystem. Fans are not distracted by the discussions about the sense and nonsense of Memecoins and have adopted BONK, almost 300 percent plus in the price curve since the beginning of the year speak a clear language. The first NFT collection for BONK was also well received by the markets. Scenarios are emerging here as to how Solana’s ecosystem can expand again even without the backing of major investors.

A second indication of Solana’s continued appeal comes from Helium (HNT). Helium is focused on the Internet of Things (IoT) and had announced shortly before the FTX crash that it was moving its network to Solana. This decision was reiterated via Twitter, also under the changed situation of Solana, the migration is to be implemented in Q1 2023. So here again SOL experiences support, which emphasizes technological advantages of Solana and is not deterred by premature swansong.

Conclusion: Solana is pumping – has the FTX shock already been absorbed?

With a current price level of around 31 US dollars, SOL has for the first time returned to regions that applied before the collapse of FTX and Co. Solana co-founder Raj Gokal had already asked the community not to turn away from SOL too quickly. However, there is still the possibility that the insolvency administrators of FTX and Alameda Research will have to sell off SOL reserves there, which could have a negative impact on the price curve. For the moment, however, the new optimism at Solana is tangible. Even the first Solana smartphones called Saga are shipping, allowing user-friendly access to SOL’s ecosystem from a smartphone. So maybe Solana really will succeed in building on its old successes and in doing so, will be able to focus on its own strengths.

__

(Featured image by GuerrillaBuzz Blockchain PR Agency via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.