Solana has recently recorded a significant milestone this year as it hit a new high for 2023. This development comes after a rally of cryptocurrencies, including major digital assets that have shown a surge in their market value. Solana has been gaining since the events around Bitcoin ETFs, but its recent price increase suggests that an independent rally is en route.
Solana’s recent highest price was recorded at the beginning of the second quarter of 2022, and at the time, its price rally was based on the adoption of DApps, among other factors. The recent surge can be attributed to a number of factors, including relations SOL has to the collapsed crypto exchange firm, FTX, that went bankrupt last year.
Solana rally to a new 2023 high
SOL, the native token to the Solana network, showed an impressive rally in its market value, recording a 22% gain on November 10. The surge saw SOL price break past the $54 mark, and this was a first since its similar price tag in May last year. Currently, Solana is priced at $55.47, recording a 39.12% increase in daily trading volume. In a yearly record, Solana has surged by 223.03%.
The digital asset’s rally can be attributed to the approval of SOL sales by the Delaware Bankruptcy Court in relation to the failed crypto exchange. Solana and FTX were closely linked as the FTX former CEO, Sam Bankman-Fried, was a prone investor of SOL. The court approved the sale of FTX assets in September 2023, inclusive of 55.75 million SOL tokens.
The growing enthusiasm for the SOL market price increase may be linked to the possibility that some tokens from the bankruptcy proceedings might be locked or vested.
Part of the FTX liquidation plans included a weekly sale limit of $100 million. Concerns about asset liquidation and fears related to such plans have been turned into a hopeful development for investors due to the limited impacts of the sales.
Comments flooded the digital space, including Bluntz, an independent crypto analysis, who reviewed the events surrounding SOL in a post on November 9, stating, “FTX has been selling between 250k-700k SOL every day for the last 2 weeks while the price has either been going up or sideways.”
Crypto rally this week
SOL’s price was also noted as coming close to the USD Coin (USDC) market cap, with an increase of 17.3% in the past 24 hours. Experts predict that its market movement is based on sellers exiting their positions in a short squeeze.
Solana holds a record of a 39% weekly gain that pushed its open interest on futures to $745 million. This has been a fresh high not seen since November 2021.
Other cryptos also rallied this week, among them being Ethereum (ETH), which saw a 14% weekly spike and rallied to levels above $2,000. The major reason behind this was the Nasdaq filling that highlighted intentions of BlackRock turning its iShares Ethereum Trust into a spot Ethereum Exchange-Traded Fund (ETF).
ETH’s performance outshined bitcoin on Friday as the filling caused an impact on the market. However, the second-generation blockchain has seen a decline in the past 24 hours of about 2.63%, recorded price tag of $2,057.9 at the time of writing.
Bitcoin rallied by a 1.34% gain in the past 24 hours, with a market price of $37,095 at the time of writing. This time, however, rally by both major carriages has not significantly affected altcoins. In fact, most altcoins recorded a decrease in price after the release of the 19b-4 filling.
