Why is the Solana (SOL) Price Up Today?

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TL;DR

  • Solana’s SOL token has surged by 15% in the past 24 hours, reaching a 20-month high of over $88 and becoming the fifth-largest cryptocurrency with a market capitalization exceeding $37 billion, surpassing Ripple’s XRP.
  • The rally may be attributed to the thriving Solana ecosystem, including high trading volumes, rising daily active users, and significant NFT sales, with Solana outperforming Ethereum in NFT sales volume over the past week.
  • Despite SOL’s growth, there is a caution against FOMO among investors. On the other hand, analysts like Crypto King and Jacob Canfield remain bullish, suggesting potential values of $300 and $1,000, respectively.

SOL Hits a New Yearly High

The revival of the cryptocurrency market continues, with some digital assets launching real bull runs. One example is Solana’s native token – SOL – which has soared by 15% in the past 24 hours, tapping a 20-month high of $88 (per CoinGecko’s data).

SOL Price
SOL Price, Source: CoinGecko

In addition, the coin’s market capitalization exceeded the $37 billion mark. Thus, SOL became the fifth-largest cryptocurrency in the entire realm, surpassing Ripple’s token – XRP.

What Stands Behind SOL’s Rally?

One factor behind the latest uptrend of the asset could be the thriving Solana ecosystem. As observed on DefiLlama, trading volume on the blockchain protocol has been going through the roof in the past few weeks. It has surpassed $1.5 billion in the last 24 hours and the $9 billion mark on a weekly basis. 

Screenshot 2023-12-21 at 11.10.33
Source: DefiLlama

Solana DeFi daily active users (DAU) have also been on the rise lately, exceeding the 200,000 level from December 14 onwards. 

Last but not least, NFT sales have also been booming on Solana. As revealed by CryptoSlam, Solana NFT sales volume in the past seven days has spiked to almost $105 million. Ethereum, on the other hand, has fallen behind with approximately $80 million registered for the same period.

Watch Out for FOMO

It is worth noting that SOL’s rapid price increase as of late might create the so-called FOMO (“Fear of Mission Out”) effect. In other words, some investors may get captured by the valuation surge and hop on the bandwagon without conducting proper due diligence. 

According to Santiment, the asset sits at the top in terms of social volume, meaning people find the topic quite intriguing at the moment.

“In each case, when there is mainstream talk at this level, FOMO will create price tops. If holding any, take a cautious approach,” the behavior analytics entity warned.

Will the Show Go On?

Numerous experts believe SOL is poised for a further spike in the near future and is currently in the foothills of an astronomical surge.

The X (Twitter) user Crypto King and Jacob Canfield laid out the most bullish predictions. The former thinks the asset could spike to $300, whereas the latter envisioned an outrageous target of $1,000.

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Source link Crypto Potato

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