SOL, Solana’s native token, reached its highest price since May 2022, surging 22% on November 10th.
The surge occurred despite the continuous selling of SOL tokens by FTX’s bankruptcy estate.
Investor enthusiasm for SOL’s price increase may be due to the fact that some of the tokens from the bankruptcy proceedings are either vested or locked, and there is a weekly sale limit of $100 million.
SOL’s resilience during the FTX bankruptcy token dump has impressed traders and analysts.
SOL’s futures open interest has reached $745 million, the highest level since November 2021.
The funding rate for leverage longs is currently 0.5% weekly, indicating strong demand for long positions.
Solana’s ecosystem has shown growth in terms of deposits and the usage of decentralized applications (DApps).
Solana’s total value locked (TVL) has reversed its declining trend, and DApps deposits have seen a 10% increase in the last three days.
Solana now ranks as the fourth-largest blockchain in decentralized finance (DeFi) TVL, with a 28% growth in active addresses.
Despite its recent rally, investors have raised concerns about the sustainability of SOL’s bull run above $54.
Solana’s accumulated 30-day fees are lower compared to BNB Chain, raising doubts about the valuation after SOL’s recent rally.
There is currently no excessive leverage demand observed in SOL derivatives contracts, but the fundamentals suggest limited room for further upside.
