Several bullish developments combined to fuel the token’s latest gains, which rose more than 25% in less than 48 hours
Solana prices saw some compelling rises in the past 48 hours, recovering as the cryptocurrency benefits from a variety of positive developments. The SOL token, which serves as the native digital asset of high-yield blockchain platform Solana, hit $76.06 last night, CoinMarketCap figures show.
At this point, it was up more than 17% since falling to just $64.91 the previous day, additional data from CoinMarketCap shows.
In explaining these latest upward price movements, analysts highlighted that numerous variables had helped produce these gains.
“This recent rally can be attributed to a confluence of factors, including growing usage of the Solana network, increased interest from institutional investors, and a maturing ecosystem, which saw DEX volumes reach all-time highs, as well as a influx of stablecoin deposits,” CCData research analyst Jacob Joseph wrote via emailed comments.
Joe Lee, founder and CEO of DefiDive, also offered his perspective, emphasizing the strong activity taking place on the Solana network.
“Below, a look at activity on Solana’s chain reveals a number of significant milestones reached earlier in the week,” he stated via a LinkedIn direct message. “The number of active wallets reached an annual record of 648,073 wallets on December 8, with a corresponding record of new token accounts on the same day,” he stated.
Lee then explains that “When we look at Solana activity, the number of active programs is indicative of application usage on the Solana network, current activity is at a level not seen since earlier this year in February 2023, and is just shy of its record set in October 2022 of 1,207 shows.”
“Correlating this week’s rise with Solana’s activity on the chain indicates an influx of new capital into the Solana network,” he added. “This is supported by the technical data and shows continued bullish signs of growth that we forecast will outperform the rest of the sector in the short to medium term.”
Aaron Golbin, Founding Partner and Head of Accelerators and Incubators at LvlUp Ventures, offered a different perspective, choosing to focus more on broader macroeconomic developments.
Through a LinkedIn direct message, he highlighted that the SOL token experienced great volatility this last week, suffering some significant ups and downs.
“I think this is due to several factors, the first of which is the news that the Federal Reserve is holding interest rates steady and adjusting its forecast for next year to a lower rate overall,” Golbin said. “This affects Solana because a recession and generally negative economic outlook hurt crypto in the eyes of many buyers,” he said.
“Lower interest rates improve the economic outlook and therefore push Solana higher due to the belief that financial transformation and a crypto comeback are more likely to occur in this type of environment. This positive sentiment was increasing, hence the jump in price.”