What is Driving Cryptocurrency Solana's Surge? Altcoin Rises Nearly 60% in 7 Days
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Solana, a popular altcoin that lost more than 80 percent over 2022 and almost breathed it's because of the FTX debacle, is making a much needed recovery. SOL has more than doubled this month and is rising more than 58 percent to $23.70 in the last seven days.
Critics were of the view that Solana would not survive Sam Bankman-Fried's FTX cryptocurrency exchange's demise. The altcoin had close ties to SBF and was often dubbed as the "Sam Coin". Solana token is connected to Serum, an on-chain crypto exchange project. Serum was created by Bankman-Fried who resigned on November 11 following the collapse of his crypto empire.
Serum is one of the core foundations of the Solana DeFi infrastructure. It brings high speed and low transaction cost to Solana DeFi. Moreover, it implements a on-chain central limit order book and matching engine. The project allows liquidity sharing and offers powerful trading features to institutional and retail investors. Developers can take advantage of Serum's full control and flexibility to build trading applications that leverage liquidity and ecosystem benefits.
Now, Solana which was once-celebrated as "Ethereum killer" recorded its highest trading volume since the week of FTX's crash.
Astounding Rebound for Solana
Solana's price surge briefly pushed Polygon MATIC out of the top 10 cryptocurrencies. Crypto watchers attribute SOL's rally to BONK, a Solana-based meme token, which was launched around Christmas of 2022. The new token pushed the price of Solana to a seven-day high at the turn of the new year. BONK is the hot, dog-themed token on Solana. It is up over 2000 percent since its all-time low five days ago. The meme coin highlighted that it burned five billion coins.
Another factor driving SOL's price is the planned migration of Helium, a distributed wireless network that offers users crypto tokens as rewards for sharing their home internet service, to Solana blockchain. Amir Haleem, Nova Labs CEO, commended Solana's much-celebrated transaction speed. He believes development work will be quite a lot easier.
Crypto enthusiasts have also reasoned SOL's price surge to the growing demand for decentralized finance (DeFi) projects. The Solana blockchain is touted for its scalability, speed and affordability. This makes it an attractive option for DeFi projects that need to process large amounts of transactions quickly and at a low cost.