Solana up 38% in a week, but it could soon crash

The price of Solana’s (SOL) token has surged over the past week, rising nearly 35% to hit a price of $42.41. This latest rally brings Solana’s gains to over 322% year-to-date.

According to a Nov. 2 analysis by Altcoin Daily, surge in Solana’s price can be attributed to various developments and factors. The ongoing Solana Breakpoint conference in Amsterdam is generating a buzz, bringing together influential figures from the Solana community and generating excitement about its future prospects.

On another front, the bullish report from investment management firm VanEck suggests that Solana could potentially outpace Ethereum (ETH) by the end of the decade, further cementing its reputation as a top-tier smart contract platform. Despite the fallout from the FTX exchange collapse and the legal issues surrounding its founder, Sam Bankman-Fried, investor confidence in Solana’s independence seems to be on the rise.

The platform is also making waves through its ongoing integrations with major players such as Shopify, Google Cloud and Amazon Web Services, which could greatly enhance its reach. Additionally, the recent $28 million sales figure from Solana’s NFT market in October is a testament to the growing popularity and usage of its decentralized apps.

The recent price surge has led an analyst behind the YouTube channel Altcoin Daily to caution that Solana may be overheating. In the aforementioned video the analyst warned that SOL’s meteoric rise could precede a major pullback.

Nonetheless, many experts remain staunchly bullish on Solana long-term due to its high transaction speeds, low fees and growing network of developers. Its backers believe it still has ample room to grow in pursuing wider blockchain adoption.

Still, co-founder of crypto exchange BitMEX and chief investment officer at Maelstrom Fund Arthur Hayes shared a much more grim point of view. In a recent tweet he described Solana in an unkind way, but admitted that he still decided to buy some.

Fam I have something embarrassing I must admit.

I just bot $SOL, I know its a Sam-coin piece of dogshit L1 that at this point is just a meme. But it is going up, and I’m a degen.

Let’s Fucking Go!

— Arthur Hayes (@CryptoHayes) November 2, 2023