Solana (SOL) has made a remarkable comeback in the crypto market with an impressive growth rate of 130% since the start of 2023. Additionally, the number of active wallets on the Solana network has seen a steady increase, further redeeming and solidifying its position in the crypto market.
Solana’s Remarkable Comeback Has Seen 130% Growth
The downfall of FTX, a cryptocurrency exchange, in November last year significantly impacted Solana and the overall crypto market. Sam Bankman-Fried (SBF), the founder of FTX, has a close association with Solana, as FTX has invested in the project via Alameda Research, a cryptocurrency trading firm that is also owned by SBF.
The co-founder of a gaming platform built on Solana, Mamba, stated that the faith of the network’s supporters has been rewarded as SOL has made a redemption. Mamba believes that the departure of SBF was beneficial for the blockchain and the technology of the network is getting better and advancing.
Solana has demonstrated a remarkable comeback this year, with an impressive growth rate of around 130% since the start of 2023, and has been one of the top-performing cryptocurrencies so far this year.
Santiment, an on-chain analytics company, suggests that a short squeeze has caused Solana’s rapid price rise – a phenomenon that occurs when a large number of investors who have bet against an asset by short selling are forced to repurchase it at a higher price to cut their losses. Moreover, Santiment highlighted that Solana is the standout performer among digital assets following a seven-day rally that saw it rise by over 45%.
Solana’s Redemption In The Crypto Market
Bonk Inu, a meme-inspired token modeled after Shiba Inu that was released on December 25th that runs on the Solana blockchain, has experienced a huge surge in value. Some traders speculate that the high trading volume of the token may be contributing to the upward trend of Solana’s price.
According to Delphi Digital, institutional-grade crypto research, the Solana blockchain has seen a steady increase, with threefold growth in the number of active wallets. Decentralized exchanges built on the Solana blockchain have experienced a significant rise of 83% in the number of active wallets since the start of 2023. It is also reported that the total number of active wallets on the Solana blockchain has grown by 83,000 from around 45,000 per day.