Solana, the so-called “Ethereum killer,” has suffered losses in recent months due to bear markets and its ties to the now-defunct Sam Bankman-Fried crypto exchange. FTX. But recently, the ecosystem is a problem surpass Shiba Inu and Tron in terms of market value.
At the time of writing, SOL still holds this advantage according to data from CoinMarketCap. This bullish action is driving crypto prices jump 0.9% in the daily period, increasing by 36% in the past week.
Catalyst Solana Rise This Year
Solana recently broke up due to two main catalysts: Vitalik Buterin, the founder of Ethereum, broke up tweeted about the problem ecosystem, he said now “opportunistic people’s money” has disappeared from the platform, and Solana has a bright future ahead.
This tweet shows the public that the cryptocurrency industry is a place for equal growth, pumping the price of SOL by 42% in just one week. Bonk, the new and only memecoin in the ecosystem, has been created heading also.
Due to the release of Bonk, the number of on-chain transactions has increased spurring investor sentiment up.
Adding to this upward pressure is imminent migration of Helium network to the Solana block which will definitely push the price of SOL further. However, the reach in the ecosystem NFT space may be largely due to DeGods and y00ts migration to Polygon and Ethereum.
Can SOL Keep Up?
Investors and traders should not discount the current problems with Solana; fear, uncertainty, and doubt. FUD around the ecosystem has been very strong post-FTX.
This new development may be a way for Solana to get rid of the negative vibes, which he does through Messari summary about Solana.
Chart: Defillama
But with the Solana Foundation significant exposure for FTX and the decimation of the entire ecosystem TVL, full recovery for the ecosystem will be hard. But with these developments, Solana was indeed given the opportunity to pick up the pieces for a new start.
Now, what does this mean for SOL? The resistance at $13.97 is stronger as the token looks lower than the current support at $13.10. With SOL’s strong correlation to BTC and ETH, macroeconomic events can disrupt the token’s recovery timeline.
SOL total market cap at $4.8 billion on the daily chart | Chart: TradingView.com
But with Nonfarm Payrolls data show positive growth along with the lower unemployment rate, the next metric investors and traders should watch out for it Consumer Price Index data to be released next week.
Any bullishness in this metric should help Bitcoin and Ethereum rise, pulling SOL up as well.
-Featured image: Bola.com