Why Solana Price is Going Up?

Solana (SOL), one of the popular crypto tokens launched in 2020 by Solana Labs, has witnessed several ups and downs in the three years of its existence. The token was once seen as a purported Ethereum killer. But it lost most of its value last year after it was found linked with SBF’s fraudulent schemes. The coin has now again started to turn the tide.

However, Solana is witnessing a constant upward trend in cryptocurrency market. In 2023, the coin’s market cap with a potential high of $36.87. In the recent update, Solana’s latest 11.99% growth has pushed its price to $42.53, outpacing the pre-FTX price of $36.77.SOL 1-Year Chart. 

The decent recovery of Solana is also driving away fears of a potential fire sale by fraud-ridden cryptocurrency exchange and crypto hedge fund FTX. 

SOL Setback in 2022 

Last year was a massive setback for crypto enthusiasts as prices of many coins hit rock bottom. Solana was amongst the worst performers. In 2022, it lost $47 billion in its market cap. The coin, which once had a market cap of $52.6 billion in its glory, was left with a market cap of $4.7 billion by early 2023. Its market cap shrunk by a whopping 11x in just a year. In comparison, Etherum’s market cap was reduced by just 3x. 

Dream Return in 2023 

After the upset in 2022, Solana is making a healthy recovery in 2023. In the past few days, the coin witnessed a surge is up over 300% since the start of the year. Its trading volumes have also recovered significantly. Investors have now again started to invest in the coin. Reports suggest that in November alone, Solana-focused funds saw $24 million of net inflows. Moreover, in the past week the inflow of funds was up by 23.9%, monthly inflow is reported 66.9%. 

In addition, by the numbers, Solana is up 31.40% in the past week, and its trading volume printed triple-digit growth of 161.11% to $3,818,808,375.

Also Read : Is Solana a Good Investment in 2023?

Unpacking Factors Propelling Solana’s Rise 

At present, several factors are fueling the price of Solana. Here we dive deeper into what is leading to the rise and rise of Solana in 2023: 

Strong Leadership 

It always had a strong leadership. Its co-founder Anatoly Yakovenko is a popular name in the crypto world and is one of the leading voices in the industry. Yakovenko has remained bullish on blockchain-based gaming. 

The other co-founder of Solana Raj Gokal is also a prominent figure in the tech industry. Gokal believes that SOL has the potential to become the ‘Apple’ of the world of crypto. He is expecting Apple-like domination of Solana in the crypto space. 

Growing NFT Community

One of the key aspects that make Solana stand out among other crypto projects is its thriving non-fungible token (NFT) community. Several projects like Drip Haus, Aurory, Taiyo Robotics, Mob Studios, and Dandies feature on Solana, and increase its appeal among the community. 

Tech Upgrades 

Solana’s developers keep bringing tech upgrades to make the coin even more perfect for several use cases. It has recently undergone a tech upgrade, which reduces the requirements of validator hardware. It has also added optional zero-knowledge-compatible encryption that will make the transactions even more secure. Furthermore, Solana will help extend Render Network into new applications, such as machine learning and inference training, unlocking new utility through Solana’s best-in-class technologies.

Strategic Alliances

From time and again, Solana strikes partnerships with key players in the crypto ecosystem. The list of its strategic alliances is really long, but here are a few companies with which it has partnered recently: Chainlink (LINK), Serum (SRM), ChainSafe, Saber Lab, Bonfida, Raydium (RAY), Dubai Multi Commodities Centre (DMCC), Render Network, Amazon for deployment of nodes and Mercurial Finance. 

These ever-increasing partnerships bring diverse use cases to the blockchain ecosystem as well as drive further innovation in the crypto space. From Solana’s point-of-view, it helps the project to gain global traction as it drives the ecosystem’s growth. 

Solana Price Prediction: Will $SOL Hit $50?

For the past several weeks, a rising channel pattern has been dictating the rise of SOL. A bullish breakthrough from here could see the coin surpassing the thresholds to trade at $40 and above. But will this momentum be enough for Solana price to hit the $50 mark? Only time will tell. You may also check out our Solana News page for all latest updates.