The token has surpassed the $63 mark, a level last seen in May 2022. Trading volumes have also surged, exceeding $3.5 billion, which is over 70% higher than the daily average of $2 billion at the beginning of November.
Solana (SOL) Surge Key Insights
- Solana's SOL surged by almost 20% within a day, outperforming other major cryptocurrencies in a market that was otherwise stagnant.
- Daily trading volumes rise significantly to over $3.5 billion, 70% higher than the average levels of $2 billion at the beginning of November.
- The price of SOL surpassed $63, a level that was last seen in May 2022.
What about the Sam Bankman-Fried's trial?
The recent surge in optimism surrounding Solana can be attributed to the conclusion of Sam Bankman-Fried's trial, although there was no clear trigger for Wednesday's increase. Bankman-Fried, a well-known supporter of Solana, amassed a significant amount of tokens, valued at over $1 billion, through his ventures Alameda Research and FTX. In November 2022, SOL prices experienced a significant decline following a report that highlighted potential vulnerabilities in Bankman-Fried's empire.
Investors not worried about FTX bankruptcy.
However, sentiment has improved and fears have diminished since the prominent figure in the cryptocurrency world was imprisoned and found guilty on seven charges. Interestingly, wallets associated with the bankrupt crypto exchange FTX, which is under the control of the debtors group, have reportedly transferred approximately $102 million worth of SOL tokens to various crypto exchanges in recent months. This movement to exchanges could potentially indicate a sale of these tokens on the open market.
Surprisingly, despite this development, SOL prices have continued to rise. Some experts in the market have speculated that the FTX estate might soon deplete its supply of SOL tokens, drawing on data from the on-chain analytics tool SponOnChain. Recent data indicates a surge in institutional investments in SOL tokens over the past few weeks. Notably, the Grayscale Solana Trust (GSOL) experienced a significant premium of almost 900% compared to the actual value of SOL held in each share. This premium serves as a clear indication of the high demand for the token among regulated funds.
In a recent CNBC interview, Cathie Wood, the CEO of ARK Invest, expressed her belief that Solana could potentially outperform Ethereum, the most widely utilized blockchain, in terms of its technical capabilities. Wood stated that while Ether was already faster and more cost-effective than Bitcoin, Solana surpasses even Ether in terms of speed and cost efficiency.