Cryptocurrency Solana is starting the new year strong after a 94% plunge in 2022. Solana’s price has rallied more than 20% in the last seven days to $16 whereas another crypto Cardano has surged over 25% during the period to $0.31, as per CoinGecko.
“Cardano and Solana have seen a significant price increase in the past week. They have recovered after reaching lows in December. The crypto market’s overall recovery, specifically Bitcoin’s, may have contributed to the rebound of these altcoins. Accumulation of whales may also have played a role. Additionally, Solana’s meme coin, ‘BONK’, might have added to its value increase. Due to these reasons, there has been a rise in large transactions by investors and traders seeking to capitalize on the current price spike,” said chief executive officer and Co-founder, Edul Patel, Mudrex.
Solana, or SOL, is the token behind the upstart Solana blockchain, which supports smart contracts, including non-fungible tokens (NFTs), and has emerged as a rival to the ethereum blockchain. Solana, a token that shed almost all its value last year because of a link to FTX’s fallen founder Sam Bankman-Fried, has surged in the early days of January.
Meanwhile, Cardano is a proof-of-stake blockchain platform and and ADA is the coin that powers the network.
The collapse of FTX has rippled across the industry, hobbling liquidity at firms with exposure to what was once one of the world’s biggest crypto exchanges. While Solana has no direct relation to FTX, and had limited exposure to the failed exchange, its association with Bankman-Fried had been a drag last year.
The crypto industry’s woes continued as plunging deposits, layoffs and a lawsuit added to the tumult of 2022, which was dominated by sinking prices and high-profile bankruptcies. Overall, the global cryptocurrency market cap today has plunged below the $1 trillion mark, down from a peak of over $3 trillion.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
(With inputs from agencies)
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