Solana (SOL) faced resistance at $102 on January 17, followed by a 23% correction to a five-week low of $78.60 on January 23. A subsequent 10% recovery within 24 hours sparked questions about the sustainability of the rebound and the possibility of SOL surpassing $90.
Optimism for SOL is partly due to the development of Firedancer, a new third-party validator client by Jump Crypto, aiming to significantly increase Solana’s processing capacity and support parallel processing (sharding).
A social media post highlighted Solana’s improved network stability compared to multiple outages in 2022, noting that while competitors, including Ethereum Layer-2 solutions, struggled with disruptions, Solana maintained performance throughout 2023.
Successful Solana SPL token airdrops on central exchanges, such as Jito’s JTO staking solution and BONK memecoin in December 2023, have sparked increased demand for SOL tokens, with investors eagerly participating in multiple airdrop events, some confirmed.
Despite a 28% drop in SOL price over 30 days, the total value locked (TVL) in Solana’s decentralized applications (DApps) attracted attention in January, nearing a three-month high at 15.3 million SOL. Solana’s network continues to grow in transaction activity and volume, yet lags behind competitors like Ethereum and BNB Smart Chain in absolute numbers.
