Why Solana is Growing and What is The Price Prediction For 2024
SOL is up 14%, breaking the $86 mark in the last 24 hours. However, Solana has been performing well for several weeks now. Let's see the reason for that.
Solana crisis
The fate of the massive selloff hit SOL in November 2022 after the collapse of FTX. The exchange, owned at the time by Sam Bankman-Fried, was Solana's largest investor. The company's bankruptcy caused SOL to drop more than 50%, and by December 2022, SOL prices had fallen to a low of $8.
It took the Solana ecosystem a year to shake off the negative impact of FTX and the association with the bankrupt company, regain investor trust, strengthen the network after a series of failures, and catch up with other cryptocurrencies such as XRP and break back into the top capitalization ranks.
Why Solana is growing?
The Solana renaissance started back at the beginning of the month, and there are numerous reasons for that. The main one was the attraction of more DeFi projects to the Solana ecosystem, which also resulted in a 400% increase in the average daily number of addresses on the network. In addition, the seven-day transaction activity on the Solana network increased by 12%, while the number of transactions on Ethereum and BNB Chain saw a slight drop of 1% and 4% respectively.
The listing of Solana-based altcoins on exchanges such as Binance and Coinbase also spurred SOL to growth. Increased investor interest in SPL, BONK, JITO led to demand for SOL. Besides, the hype related to the BONK meme coin led to the sold-out of Solana Saga smartphones, the owners of which received BONK for free. The developers were forced to take such a step, as for a long time the smartphone was considered a failed product of the ecosystem.
Investors are increasingly eyeing Solana-based NFTs. SOL growth is driven by sales of Tensorians and Mad Lads. The ecosystem's main NFT platform, Rarible, recorded more than 500,000 active addresses, and trading volume on DEX platform Saber, which is also powered by Solana, totaled more than $113 million. Meanwhile, Orca, which has consistently recorded $100 million in volume, generated $746 million in volume last week.
Yesterday, leading hardware wallet provider Trezor announced the addition of support for Solana and the SPL token.
For the first time since November 2022, when Solana suffered the collapse of FTX, Solana's TVL reached its highest level since November 2022 at $1.15 billion. That's a 96% increase from last month.
The excitement around SOL is expected to continue ahead of the imminent airdrop of tokens like Bonkwifhat (BIF), Ribbit (RBT), Jupiter (JUP), Meow Coin (MEOW), Phantom, Kamino, and Drift.
Solana forecast for 2024
Over the week, Solana's capitalization rose 14% to $34.5 billion dollars, putting the asset in fifth place and surpassing XRP. Over the past 24 hours, SOL has risen 14%, breaking the $86 mark. The asset is now on a strong uptrend. Back on December 18, the bulls pushed the price up and allowed SOL to overcome the resistance level of $79.9.
Experts are confident that the bulls will be able to keep the price above $80, which will push SOL to $100.
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After SOL managed to overtake XRP, enthusiasts are wondering if the asset that has risen from the ashes will be able to overtake the next on the list, BNB. Binance's native token has been facing problems lately amid the exchange's disputes with regulators. Therefore, SOL could outperform BNB already in the current bullish trend.
Sam Bankman-Fried Binance Phantom Trezor
