- SOL is up nearly 95% since the end of the 2022 trading year
- SOL has also seen increased activity in its home country following the launch of the BONK token
My path is in new a report on January 10thchallenged Solanas’ view [SOL] Poor network performance. The report highlighted its strong fundamental metrics and the positive price performance of a local currency over the past few weeks. The report also suggested that negative feelings towards Solana’s first-tier network may have been exaggerated.
Read Solanas [SOL] Price forecast 2023-2024
Contrary to popular belief that activity on Solana dropped sharply due to unexpected fallout from FTX, the on-chain data provider found that daily active wallets on major protocols hosted on Solana “remained flat after FTX.”
In fact, over the past four weeks, the number of daily on-chain active wallets has tripled ahead of FTX levels despite the huge drop in SOL value in December.
Massari says this about Solana
If the number of daily active wallets on Solana continues to grow at this rate, Massari said,
“It’s really an open question how stable this new volume will be, but at least a stable volume with FTX leaving the ecosystem is a positive sign.”
Furthermore, Messari evaluated Solana’s transaction volumes and active fee-paying accounts and found that both metrics had returned to pre-FTX levels.
“Speculation may have fueled recent activity, but it is difficult to determine the FTX crash by looking at these metrics, which indicate that the level of user activity has not really fallen below pre-FTX levels.”
Al-Masari pointed out that despite the increase in online user activity, gas fees are still relatively low. Although base fees on Solana have remained stable, there has been an increase in priority fees “for using more active parts of the network (such as BONK)”.
Are your SOL holdings flashing green? Check out our SOL Earnings Calculator
Thanks to Buterin and the newest dog coin in town
Solana’s native token, SOL, has seen a significant increase in value, up nearly 95% since the end of the 2022 trading year.
The recent increase in the value of SOL has been attributed to two main factors, the first of which is the support of Ethereum founder Vitalik Buterin, who tweeted support for the Solana network after the collapse of FTX on December 30. The second, increased activity on the Solana blockchain after the launch of the BONK token.
Some smart people tell me there is a serious smart developer community on Solana, and now that the terrible opportunistic money has been shoveled in, the series has a bright future.
Hard for me to say from the outside, but I hope the community gets a fair chance to thrive🦾🦾
– Vitalik.eth (@VitalikButerin) December 29, 2022
At the time of publication, SOL is trading at $16.08. With trading still increasing at the time of writing, major momentum indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) are seen at overbought levels. The RSI was held at 70.22, while the MFI was held at 75.31.