The cryptocurrency Solana (SOL) has recently seen a significant price jump, reaching a peak of $174, marking its highest value since January 2022. This surge, which represents a 6.70% increase, outshone the crypto market’s general downtrend, which saw a 0.25% drop on the same day. At the time of the report, SOL has stabilized to $166.
Contributing Factors to Solana’s Success
Solana’s upswing coincides with the buzz generated by the Dogewhatif (WIF) memecoin project. Enthusiasts of WIF managed to collect $50,000, part of a larger $700,000 fundraising target, and elevated the token’s visibility by showcasing its logo in Las Vegas. Subsequently, the WIF token soared by 25%, attaining a $3 billion market valuation.
Following the announcement of the Dogwifhat marketing push on March 10th, Solana saw a 24% increase in its price. This growth in value gained traction particularly after the WIF project’s successful capital raise.
Recent memecoin launches on the Solana blockchain have captured the interest of investors, further driving up SOL’s price. A Franklin Templeton study highlighted a spike in network activity, particularly during the successful run of another Solana-based memecoin, BONK, in the last quarter of 2023.
These initiatives suggest a potential demand surge for SOL, propelled by increased DApp usage and transaction volume on the Solana network. The total value locked in Solana has reached a new high since December 2022, with 23.07 million SOL reported on March 14th.
Solana Versus Bitcoin: A Comparative Recovery
Solana’s impressive recovery is also evident when compared to Bitcoin (BTC). The SOL/BTC pair has soared by 32.45% after hitting a monthly low. On March 14th alone, SOL gained 6.60% against Bitcoin, implying a capital migration from Bitcoin to Solana.
With Bitcoin’s 65% increase this year and indicators pointing to overbought conditions, investors seem to be turning their attention to altcoins like Solana and XRP, which exhibit more balanced market sentiment, reflected in their lower Relative Strength Index (RSI) values.