Solana, the native cryptocurrency of the Solana blockchain, has been on a remarkable surge in the past three weeks, reaching a new all-time high of over $110 on Sunday morning. The impressive surge in value has seen SOL surpass levels not seen since the night before Terra collapsed a year and a half ago, marking a 400% rally in just six months.
The surge in SOL’s price is part of a wider trend in the cryptocurrency space, characterized by a resurgence in market sentiment and a general rebound in the digital asset market. According to Coingecko data, SOL is currently holding a fluctuating position in the $110–$117 price range, up 21% over the past week and sustaining a strong 60% increase over the past week. The market capitalization of the token as a whole has also increased by 40%, indicating renewed confidence and interest in the digital asset field.
The total value of tokens locked on Solana applications has also seen a significant increase, reaching levels last seen in July 2022 with a rally to $1.3 billion from $400 million in November. SOL’s year-to-date gains have reportedly increased to over 830%, with the majority of the growth occurring in the last two months alone.
The surge in the price of SOL comes amidst an increase in on-chain activity in the Solana ecosystem, with decentralized exchanges located in Solana getting close to Uniswap’s trading volumes, which amount to billions of dollars. The chain’s daily count of active addresses reached a year-to-date high of 1.26 million, according to an evaluation of network activity.
As interest in Solana grows, the thriving ecosystem and its function as a hub for speculation are expected to boost SOL into the much-coveted $120 level. The combination of increased activity in the Solana ecosystem and increased speculative interest in the cryptocurrency market provides a convincing story for the continuous increase in SOL’s value.
Overall, the impressive surge in SOL’s price and the rise in on-chain activity in the Solana ecosystem mark a significant milestone for the cryptocurrency, positioning it as a strong contender in the digital asset space.