Solana Emerges as Top Performer in 2023: A Detailed Analysis
Solana, the cryptocurrency that has recently gained significant attention, has experienced a remarkable surge in its value. Starting from $21 in mid-October, it surged to nearly $45 last week, solidifying its position as one of the top 10 cryptocurrencies in the market. This surge came right after the disastrous collapse of FTX, showcasing Solana’s resilience and strength in the volatile market.
Following the FTX collapse, SOL briefly traded under $10 before experiencing extraordinary price gains. One of the key drivers behind this surge was the increased activity on the Solana network, especially due to its successful liquid staking token protocols like Jito.
Often referred to as an “alt L1,” Solana is frequently compared to Ethereum (ETH). Since September, it has outperformed Ethereum, with the ratio between the two cryptocurrencies jumping from 0.011 to nearly 0.025. Ethereum, despite being the second-largest cryptocurrency, has been facing challenges related to scalability and network centralization due to heavy staking in pools.
Coinbase played a significant role in Solana’s rally, leading in net buying with a purchase of 2.2 million SOL tokens since October 18. Binance followed suit in November, quickly accelerating market buying and contributing to the cumulative volume delta (CVD) of 1.9 million SOL tokens since October 18. Interestingly, Korea’s leading exchange, Upbit, took a unique path by selling a net of nearly 4 million SOL tokens, reflecting the diverse nature of the cryptocurrency sector.
Solana’s dominance is evident in its ranking as the most traded altcoin on US exchanges this year, surpassing other popular cryptocurrencies like DOGE, LTC, MATIC, and XRP. This positive trend for altcoins in the U.S. comes after a challenging start to the year, with XRP also experiencing a brief period of growth following Ripple’s court victory.
As of now, Solana has achieved a growth exceeding 200% since the beginning of 2023, resulting in a total value locked in the Solana ecosystem reaching an impressive $378 million. Asset management firm VanEck has predicted significant price gains for SOL, estimating a range of valuation scenarios from a conservative estimate of $9.81 to an ambitious $3,211.28 by 2030. This indicates a potential 10,600% price surge for Solana.
VanEck’s bullish outlook positions Solana as a serious challenger to Ethereum, which currently has its target price set at $11,800. Ethereum is currently trading at $1,886.76, down 0.34% since yesterday. VanEck’s report envisions Solana as the top blockchain network capable of handling over 100 million users, showcasing the platform’s potential for future growth and adoption.