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Solana Surges 11% to Become Fourth Largest Cryptocurrency
Solana, the blockchain platform, has experienced a significant surge of 11% in the past day, propelling it to the position of the fourth largest cryptocurrency based on market capitalization. This surge has enabled Solana to surpass the market capitalization of Binance’s BNB token.
As of early Monday morning, the price of Solana stands at $206.11, with a market capitalization of $92 billion. In the span of a week, Solana’s price has seen an impressive 40% increase, as reported by CoinGecko. This surge has also led Solana to surpass its previous all-time high market capitalization that was achieved just on Friday.
Market Dynamics
The recent rally in Solana’s price has resulted in the liquidation of more than $1 million worth of short contracts within the last hour. This amount exceeds the liquidations observed for both Ethereum and Bitcoin during the same timeframe, according to data from CoinGlass. Over the past day, over $12 million worth of Solana short positions have been liquidated.
Short positions are strategies employed by traders to profit from the anticipated decline in the price of an asset. Traders borrow assets, in this case, SOL tokens, expect their value to decrease, sell them, and commit to repurchasing them at a future date. If their prediction proves correct, they repurchase the assets at a lower price, thereby realizing a profit. However, incorrect predictions result in brokerages and exchanges liquidating their positions to limit losses.
SLERF Meme Coin Launch Snag
Amid Solana’s price rally, the ecosystem encountered an issue during the launch of the SLERF meme coin. An inadvertent action by a developer led to the burning of $10 million raised during a token presale. The developer, facing the community, hosted a Twitter space session titled “I messed up” to provide transparency and explain the situation.
During the session, the developer acknowledged the mistake, stating that it was no longer his project and expressed regret over the inability to refund the funds. He committed to rectifying the situation to the best of his ability and ensuring that presale participants are compensated.
Despite the setback, the developer remained optimistic, emphasizing their intention to rectify the situation and restore trust within the community.
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