What exactly is driving Solana’s price surge?
The post What exactly is driving Solana’s price surge? appeared on BitcoinEthereumNews.com.
Solana, one of the prominent cryptocurrencies in the market, has seen a remarkable surge in its price, soaring 40% this week to establish a new 2023 high at around $58. This impressive rally marks Solana’s best weekly performance since January 2023, driven by a confluence of factors, including a general uptrend in the cryptocurrency market, Bitcoin ETF euphoria, and growing investor appetite for risk. The rise of Solana, despite ongoing sales of SOL tokens by FTX’s bankruptcy estate, reflects the market’s resilience and growing confidence in Solana’s potential as a leading digital asset. Overcoming Market Challenges Solana’s bullish trajectory has been particularly noteworthy given the backdrop of FTX’s bankruptcy estate selling 250,000-750,000 SOL tokens daily in the last two weeks. Despite fears of a potential market dump following the approval by the Delaware Bankruptcy Court to sell 55.75 million SOL tokens in September 2023, the market has absorbed these sales with minimal impact. This resilience can be attributed to the fact that some of these tokens are either vested or locked, and the weekly sale limit is capped at $100 million. Instead of dampening investor spirits, these developments have transformed initial fears into enthusiasm, with Solana-focused funds witnessing inflows worth $10.80 million in the week ending November 3, according to data from CoinShares. The Bitcoin ETF Factor Another key driver of Solana’s price surge is the overall cryptocurrency market uptrend, fueled in part by the euphoria surrounding Bitcoin ETFs. Bitcoin’s climb toward $38,000 has set a bullish tone for the entire market, with Solana emerging as the top performer in the past 30 days. The anticipation and optimism for the approval of major Bitcoin spot ETF applications by January 2024 have contributed to this positive sentiment, benefiting Solana and other altcoins in the process. Solana’s Futures Open Interest and Funding…
Filed under: News - @ November 12, 2023 3:20 am