Solana (SOL) has seen remarkable growth over the past month, surpassing its peers in the cryptocurrency market. According to data from Messari, SOL’s market capitalization increased by more than 60%, solidifying its position among the top ten crypto assets.
This meeting comes after a challenging period for SOL bulls who struggled to hold support around $20, not to mention the significant drop to $8 following the implosion of the FTX exchange in November.
The price of major ecosystem tokens has been rising lately.
Solana in particular has experienced a price increase of almost 55% in the last 30 days.
Major ecosystem screener: https://t.co/TPNhzaeln4 pic.twitter.com/EXbjvQvO79
— Messari (@MessariCrypto) October 23, 2023
Solana price recent fluctuations
SOL’s price peaked at $32 before settling at the current level of around $31.28, as reported by Coin gecko. Although there has been a slight decline of 0.4% over the past 24 hours, the cryptocurrency has staged an impressive seven-day rally, gaining 30.2%. To put this in perspective, the last time SOL traded at a similar price level was in November 2022, just before the FTX exchange incident rocked the market.
The rise in SOL’s price can be attributed to the overall bullish momentum in the cryptocurrency market over the past few weeks. Santiment data shows that SOL’s daily trading volume has increased by more than 30% since October 16. This increased trading activity indicates growing investor interest and confidence in Solana’s potential.
A closer look at the momentum indicators on a daily chart highlights the significant accumulation of SOL compared to its distribution among spot traders. This indicates that buying activity has exceeded profit-taking activity, contributing to the continued rally in SOL’s price.
However, it is important to note that these indicators also indicate that the cryptocurrency has become overbought and may be due for a correction. Investors should remain cautious and closely monitor the market in light of this overbought signal.
Solana’s growing influence in the Web3 space
Interest in Solana extends beyond the native token SOL, as the Solana protocol continues to gain traction in the Web3 ecosystem. A remarkable development is the adoption of Solana by Ryder, a groundbreaking hardware wallet secured by a user’s social network. Ryder chose the Solana blockchain for its unparalleled scalability and fast transaction capabilities.
Ryder will integrate @solana and join the mission to unlock value beyond browsers and phones.
Imagine a world where Web3 fits seamlessly into our daily lives.https://t.co/wq7Y0RJu6N
— Ryder (@Ryder_ID) October 24, 2023
Ryder’s move to use Solana’s blockchain is a strategic step toward achieving ultimate decentralization within its ecosystem, reducing dependence on big tech companies. This underlines the versatility of the blockchain and its potential to reshape the landscape of decentralized finance and applications in the near future.
The recent rise in Solana’s market cap and price is indicative of the cryptocurrency’s growing prominence in the digital asset landscape. However, investors should remain vigilant as overbought conditions could necessitate a market correction.
Meanwhile, Solana’s growing influence in the Web3 space demonstrates its potential to revolutionize the way we interact with technology and finance, making it an exciting project to watch in the blockchain industry.
(The content of this site should not be construed as investment advice. Investing involves risks. When you invest, your capital is subject to risk).
Featured image from The Daily Hodl