Solana (SOL) Price Soars: Positive Developments Fuel a 10% Surge
Solana (SOL) has emerged as the best-performing cryptocurrency among the top 20 by market capitalization over the past 24 hours, registering a significant surge of nearly 10% in its price, according to CoinGecko data. At the time of writing, SOL is trading above the $24 mark, starting the day under $22.
This surge in SOL price can be attributed to the optimism surrounding the spot Bitcoin (BTC) ETF and the news that the estate linked to the bankrupt crypto exchange FTX has staked $121 million worth of SOL tokens, alleviating concerns about immediate token sales.
FTX Estate Stakes 5.5 Million SOL Tokens
A pseudonymous crypto analyst reported that the FTX estate has staked 5.5 million SOL tokens, equivalent to $122 million. Solana offers attractive annual staking yields of around 7%, which is approximately double the returns investors can receive by staking Ether (ETH).
The FTX estate, which holds over $1 billion in SOL tokens, has most of these tokens vested over the next five years. This vesting structure eliminates the possibility of massive near-term token sales that could lead to a significant SOL price crash.
The estate recently obtained permission to sell its crypto holdings to repay its creditors (former users). However, it plans to strategically sell these holdings after notifying the public in advance. The recent staking of $121 million tokens indicates their intention to hold onto them, contributing to SOL’s exceptional performance in the market.
Price Prediction – What Lies Ahead for Solana ($SOL)?
Considering Solana’s technical outlook, the cryptocurrency appears poised for positive developments. The recent price surge has propelled SOL above its major moving averages. If SOL can break above its August/September highs, it could pave the way for a rally towards yearly highs at $32, implying potential near-term gains of approximately 35%. The cryptocurrency’s sustained strong long-term uptrend since 2022 suggests that the recent rally is well-supported.
Crypto Alternatives to Consider
While Solana’s outlook is promising, it remains a high-risk investment due to its classification as a security by the SEC. For investors seeking even higher probability of near-term gains, participating in crypto presales presents an alternative high-risk-high-reward investment strategy.
In crypto presales, investors purchase tokens of emerging crypto projects to support their development. These tokens are usually sold at lower prices, and historical data shows that presales often yield substantial gains for early investors. Identifying projects with strong teams and innovative visions can offer excellent risk/reward ratios for presale investments.
The team at Cryptonews dedicates substantial effort to researching presale projects, helping investors identify promising opportunities in the crypto market.