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The Rise of Solana’s Market Cap
The market cap of Solana reached an all-time high late Friday, as per CoinGecko data, surpassing $82 billion before settling at around $80.5 billion. Despite this slight dip, it continues to exceed the peaks seen in 2021. However, Solana’s price, represented by SOL, remains notably lower than its November 2021 peak of $259.96. This discrepancy can be attributed to the increased number of coins in circulation compared to the previous year, contributing to the overall surge in market cap.
Currently, SOL is trading at $181, marking a nearly 9% increase over 24 hours and a 21% rise over the past week. Among the top 20 coins and tokens, SOL stands as the best performer in the past day. Furthermore, the current peak represents the highest price level observed since December 2021.
The Unexpected Resurgence of Solana
Unexpectedly, Solana experienced a resurgence last year, with the blockchain positioning itself as a faster and more cost-effective competitor to Ethereum. Previously associated with the collapsed FTX crypto brand, Solana’s token, SOL, faced a significant price decline towards the end of 2022. Amid speculation that the legal proceedings against former FTX leader Sam Bankman-Fried and the subsequent collapse of the crypto platform would have adverse effects on SOL and its network, the opposite occurred.
In November, Solana witnessed a renewed surge for several reasons. The platform’s speed and affordability attracted developers, while prominent entities like Shopify and Visa expressed interest in utilizing its blockchain technology. Additionally, meme coin enthusiasts gravitated towards Solana due to its minimal transaction fees, further bolstering its popularity.
SOL now holds the position of the fifth-largest digital asset based on market capitalization. The increased interest in its network coincides with the recent upswing in cryptocurrency values, particularly with the growing popularity of new meme tokens like BONK and Dogwifhat.
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