Solana (SOL) Jumps 20%, Here’s Possible Reason Behind Rally

SOL, the native currency of the Solana blockchain, is up a whopping 20% in the last 24 hours at a current price of $25.16. Solana is outperforming the top 10 cryptocurrencies in daily and weekly gains, having gained 12.73% since the past week.

According to Santiment, an on-chain analytics firm, the current price increase for Solana is supported by volume upticks. In a chart posted, Santiment wrote that traders are showing major FOMO (fear of missing out) on Solana and three other altcoins, owing to Friday’s huge pump.

🥳 #Equities soared Friday, and #crypto erupted with them as many #altcoins are seeing big returns. Volume upticks are supporting prices rises for:

📌 @hedera $HBAR (+33%)
📌 @SkaleNetwork $SKL (+16%)
📌 @solana $SOL (+11%)
📌 @decentraland $MANA (+11%)https://t.co/4oc7JGm1py pic.twitter.com/VcQHV6axoH

— Santiment (@santimentfeed) January 20, 2023

This is seen in the trading volume, which is up a whopping 170% in the last 24 hours, according to CoinMarketCap data. Increased volumes typically coincide with higher volatility as traders jump in to capture profits.

The rally started after a positive tweet by Ethereum co-founder Vitalik Buterin, expressing “hope” that Solana “gets its fair chance to thrive,” shortly after SOL had plunged to a record low of $8.19 in the wake of the FTX fiasco. FTX co-founder Sam Bankman-Fried was a strong backer of Solana.

SOL has doubled its price since mid-December, reaching as high as $25.86 at press time, and is up 107% this year alone.

New ray of hope for Solana

The price rebound of SOL has brought about renewed optimism over the long-term future of the blockchain.

1/ A new report by @ElectricCapital shows that Solana is the fastest growing developer ecosystem, surpassing 2,000 total developers in 2022. It’s second in raw numbers only to Ethereum.

Let’s dig into the numbers.https://t.co/HQvPbQzQD2 pic.twitter.com/xV6pnoT7db

— Solana (@solana) January 17, 2023

Solana was named one of the fastest-growing developer ecosystems in 2022, according to a recent report by Electric Capital.

Per the statistics given, the number of developers working on Solana crossed the 2,000 mark in 2022, second in raw numbers only to Ethereum. Also, the developer count increased by 83% between December 2021 and December 2022.

Along with an increase in developers, Solana has seen a remarkable increase in the adoption of priority fees and local fee markets. This was seen throughout the network at the dApp and wallet levels.