Solana’s SOL price has experienced a 20% gain between September 28 and October 6, indicating a double-digit recovery. This recovery can be attributed to improving fundamentals rather than just a tandem move with Bitcoin. The price breakout followed a turbulent period for SOL after a U.S. court approved the sale of $1.3 billion in SOL from the bankrupt exchange FTX. However, confidence among bulls emerged as SOL reestablished support at $20 and underwent a successful upgrade to version 1.16, resulting in a 16% increase over the next seven days.
SOL’s rally was also supported by the growth in decentralized applications (DApps) and nonfungible token (NFT) volumes on Solana. The network saw an increase in activity across all sectors, including NFT marketplaces, decentralized finance, collectibles, social, and gaming. Solana’s active addresses engaging with DApps even exceeded those of Ethereum during the same period. In the NFT market, Solana surpassed Polygon in sales value over the past seven days.
The recent network upgrade to version 1.16 introduced a “gate system” and “confidential transfers” to enhance network stability, privacy, and security. However, despite Solana’s progress, Ethereum layer-2 solutions have gained more traction in terms of total value locked (TVL) and activity. Solana faces stiff competition from these solutions and investors remain focused on the Ethereum ecosystem.
Summary:
– Solana’s SOL price has staged a double-digit recovery since September.
– The recovery is driven by improving fundamentals rather than just following Bitcoin.
– Confidence among bulls emerged after SOL reestablished support at $20 and underwent a successful upgrade.
– SOL’s rally is supported by the growth in DApps and NFT volumes on Solana.
– Solana surpassed Polygon in NFT sales value over the past seven days.
– The network upgrade to version 1.16 enhances stability, privacy, and security.
– Solana faces competition from Ethereum layer-2 solutions.
– Investors remain focused on the Ethereum ecosystem.
