After a severe market crash at the end of last year, the crypto landscape has been on a steady path to recovery, with altcoins leading the way. Solana (SOL) is one of these many altcoins, and has kicked off the weekend with an explosive start.
According to data by CoinGecko, SOL has gained 40% in the last 24 hours, causing excitement throughout the Solana ecosystem. Although it is not known how long the altcoin can sustain this momentum, this significant price gain reflects positive sentiment from investors.
Interestingly, as a result of the price rally, Solana (SOL) even surpassed Polygon (MATIC) in market capitalization, becoming the 10th largest cryptocurrency. However, this was only for a short time, as Ethereum-based tokens began to seize the position.
At the time of writing, SOL is trading at $23.75 with a 24-hour trading volume of $2,499,092,493 based on data from CoinGecko. That said, the token’s market cap is set at $8,820,357,518, with a circulating supply of 370,622,211.
SOL is trading at $22.42 | Source: SOLUSD Chart on Tradingview.com
Solana Has Been In The News Lately
Before the current development, Solana had been one of the altcoins in the headlines mainly due to its excellent price action. On December 30, 2022, Ethereum founder Vitalik Buterin tweeted a statement expressing support for Solana after the token’s value dropped by 20% at the end of last year due to the FTX crisis.
In the next 24 hours after Buterin’s tweet, the price of SOL rose 12% from around $8.19 to $9.50. At the start of the second week of 2023, SOL was trading at $17.1, representing a price increase of about 80.63% for the week. Since then, SOL has been moving sideways until the current price increase.
Aside from Buterin’s tweet, the other propelling force behind Solana’s price action is the massive price movement of Solana-based meme coin BONK.
Earlier this year, BONK, a new meme coin launched on December 25th, gained over 2000% in the first week of the year, becoming the largest meme coin in the Solana ecosystem.
Although BONK soon crashed by 50% after its incredible bullish run, there is still optimism around the meme coin as many investors expect it to return to its previous high price levels in week to come.
Price prediction for Solana in 2023
According to the top price prediction site, Wallet Investor, the price of SOL could drop to $5,875 in 2024, representing a 73,836% drop from the current market price.
However, Coincodex predicts an overall bull market for Solana this year. The team expects SOL to trade at $67.64 in 2024 if the altcoin follows the internet’s growth trajectory over the next 12 months.
Regardless of price predictions, Solana has started the year strong and is seen as one of the most promising projects for 2023. He said, investors have been warned not to rely on price predictions when making investment decisions; more, they must do due diligence when consulting financial market experts.
Featured Images: Solana.com, Graphics from Tradingview.com