Solana (SOL) gained 70% in value in the last month and nearly 200% in the last year. In this article, we will take a closer look at the reasons for the rise in Solana (SOL). Solana (SOL), which was launched in 2020, has had a very up-and-down performance so far. Solana, once called the “Ethereum Killer”, went into free fall and severely lost value as a result of the bankruptcy of FTX in November 2022.
It looks like Solana (SOL) has started to recover again. Continuing its steady rise in 2023, SOL gained 70% in value in the last month. Therefore, this development raises the question “Why is Solana rising?” It also brought with it questions.
The market value of Solana (SOL) more than tripled in 2023. So much so that Solana (SOL) has outperformed Bitcoin and Ethereum as well as the S&P Cryptocurrency LargeCap Ex-MegaCap Index since the beginning of the year.
Solana’s Decline in 2022
As a result of the negative developments in 2022, there were sharp declines in the cryptocurrency market. As a result of the collapse of the Terraform Labs ecosystem and the bankruptcy of FTX, cryptocurrencies lost serious value. During this period, Solana (SOL) also became one of the worst performing cryptocurrencies.
Solana’s (SOL) market value decreased by 47 billion dollars in 2022. The market value of Solana (SOL), which once had a market value of $52.6 billion, decreased to $4.7 billion at the beginning of 2023. This means that Solana’s market value will decrease 11 times in 2023. During the same period, the market value of Ethereum decreased only 3 times.
Solana Came Back to Life in 2023
Solana (SOL), which recovered and rose again in 2023 after its poor performance in 2022, has gained 200% in value since the beginning of the year. SOL’s trading volume also increased significantly. As a result, investors started investing in Solana again. Reports show that there was a net capital inflow of $24 million into Solana-based funds in the third week of October.
Next Page: Why has started to rise now?
The future of Solana (SOL) coin.
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