Solana, the blockchain protocol that saw a dramatic collapse of its native token price by over 80% in 2022, is experiencing a resurgence in 2023. Data from CoinGecko shows that SOL has increased by 58 percent in the last 7 days – to $23.70.
Furthermore, the token experienced its greatest trading volume rise since the week of the catastrophic crash of cryptocurrency exchange FTX, which caused Solana to lose more than half its value in November, along with the general cryptocurrency market decline.
For Solana, this is a stunning improvement. Only a few weeks ago, Sol was about to close 2022 at a 94% loss, reaching its lowest price in two years – $8.17 – and losing its position as one of the twenty most valuable coins, according to CoinGecko.
However, Solana has made a huge jump in the cryptocurrency market, even surpassing Polygon’s MATIC – whose market capitalization has now reached $9 million – to become the tenth largest crypto asset. This milestone comes just days after Solana surged 21% in only 24 hours, making its most impressive gains over this past weekend. The surge has put Solana’s price at its highest point since FTX fell.
BONK, a Solana-based meme token, has contributed to the recent positive news cycle surrounding Solana, generating a lot of attention over the holidays and helping to drive the price of Solana to a seven-day peak near the end of the year. A new dog-themed cryptocurrency appears to be catching the attention of the coin collector community, together with the Dogecoin and Shiba Inu tokens.
During the first week of 2023, BONK spiked by 3,300% – to $0.00000487, CoinGecko data shows. But after a subsequent five-trillion token burn, the price of BONK failed to maintain its upward trend, slipping by 69% during the past week; however, the token still holds a market capitalization of $57 million. The price of this asset even went up by 20% in the last 48 hours.
It is also possible that the planned migration of Helium to Solana may have contributed to the cause. The migration was revealed in September, which caused SOL’s price to rise, whereas Helium’s native token price dropped. Yet the Helium team — which is a service that rewards users with crypto tokens when they share their home internet — remains committed to supporting Solana long-term.
“You can do stuff, and it happens instantaneously,” Nova Labs CEO Amir Haleem commented, praising Solana’s renowned transaction speed and its ease of use.