The reasons for the jump in the price of Solana during the past weeks; Does the upward trend continue?
Among the first 100 currencies of the market, Solana ranks fifth in terms of yield in 2023. The price of SOL has increased by more than 1,044% since the beginning of this year, and the growth rate of this digital currency has been amazing in the last 3 months. But what are the reasons behind Solana’s strong upward trend and can this growth continue?
The return of Solana from the beginning of 2023 to today is more than 1,000%, while Bitcoin and Ethereum have increased in price by 158% and 87%, respectively, during the same period, which shows that Solana has the best performance by far among the big names of the market. dedicated.
The Solana blockchain is more scalable than many of its similar networks; This means that transactions in this network are done faster and cheaper than blockchains like Ethereum. As a result, interacting with the DeFi space or decentralized finance on the Solana network is cheaper for users.
Apart from the technical capabilities, the supply of tokens by some projects and the holding of airdrops with the aim of distributing rewards among users are among the main reasons for increasing the reception of Solana network during the past months. Jito and Bonk are two examples of cryptocurrencies that had successful airdrops on the Solana network.
Jito is a special staking protocol on the Solana blockchain with a Total Locked Value (TVL) of $718 million, which recently distributed an airdrop of $230 million (at current prices) to its project stakeholders with the launch of its governance token, JITO.
In the case of the Bonk coin meme, the airdrop was in the form of 30 million BONK units (worth $544 at current prices) being distributed to owners of Saga, the Solana smartphone. This attractive airdrop caused all Saga Solana phones to be sold and its price on secondary markets such as eBay, even increased to $5,400; That is about 5 times the iPhone 15.
Currently, there are other projects such as Jupiter, Phantom wallet, and Kamino lending protocol in the Solana network that have not yet issued tokens. This issue can provide the liquidity needed to continue the upward trend of Solana and encourage users to continue working in this network.
The worrying thing about the Solana network, however, is that this blockchain has experienced downtime due to technical issues in the past. In recent months, despite the occurrence of such problems in competing networks, Solana has not faced any problems due to the large volume of user activity. If there is no challenge in this field for this blockchain in the future, we can hope for the continuation of the growth process of intra-chain activities in Solana.