Solana’s SOL price surges, ecosystem expands
Solana’s native cryptocurrency, SOL, has seen a notable rise in value, reaching $130 in February 2024, with a further increase to $144 in the following weeks, marking a 45% surge. The blockchain platform’s Total Value Locked (TVL) surpassed $2.5 billion, and its Non-Fungible Token (NFT) ecosystem achieved $5 billion in all-time sales volume. These milestones come alongside the Solana Foundation’s continued support for community development, including the announcement of a Web3 Hackathon and the success of Solana Mobile’s Chapter 2 smartphone, which garnered 100,000 preorders in less than a month.
The growth of Solana’s ecosystem is attributed to several factors, including the launch of trending coins like WIF, BONK, and SMOG, which drew significant attention and investment. The network’s perceived advantages in affordability and ease of use, as well as its rapid development and upgrade implementation, have contributed to its rising popularity despite a 5-hour network outage in February. The outage, caused by complications with legacy programs, was quickly resolved, and the market correction did not significantly impact SOL’s price.
Solana, founded in 2017 by Anatoly Yakovenko, is an open-source blockchain platform known for its scalability and speed, handling over 710,000 transactions per second without the need for additional scaling solutions. Its Layer 1 network architecture supports smart contracts and decentralized applications (DApps), making it a strong competitor in the decentralized finance (DeFi) and NFT marketplaces.
Recent ecosystem updates include Helius securing $9.5 million in funding to develop tools for Solana blockchain developers, and the acquisition of Ottr Finance by Tools for Humanity to support the Worldcoin project. Additionally, Solana co-founder Anatoly Yakovenko participated in a $25-million Series A investment in crypto mobile payment firm Oobit.
Despite the recent price rally, the low Price-to-Sales (P/S) ratio suggests that SOL is still undervalued. The Relative Strength Index (RSI) indicates that Solana is overbought, yet historical data shows that SOL tends to rally after entering this zone. The increase in the number of addresses on the chain and investor support suggest continued growth, although the market may need to secure a support floor to maintain bullish momentum.