Solana (SOL) Coin has been rapidly ascending even as Bitcoin (BTC) experienced a pullback, maintaining a price above $80. Previously, when SOL was just over $30, there was speculation about reaching $80 and $100 targets. The momentum has not slowed down, and SOL continues to climb at an impressive rate, reflecting a strong recovery since the FTX collapse, which had left the altcoin in a precarious state.
The reasons behind Solana’s surge are multifaceted. The quick recovery of BTC prices has certainly played a role in bolstering SOL’s rally. Other contributing factors include Solana being one of the most popular altcoins this year, the launch of JITO positively impacting SOL’s momentum, and GSOL trading at a premium, suggesting institutional investors might be driving the spot price higher. Additionally, the excitement around Layer1 technologies, coupled with Solana’s fast and cost-effective network, has set high expectations for 2024.
Solana’s investors have partially healed their wounds with the BONK Coin, which saw a significant price increase, further stimulating demand for SOL. Moreover, Solana’s Total Value Locked (TVL) is around $1 billion, indicating a resurgence in network activity. With technical breakthroughs, the $80 target is no longer challenging, and investors are now eyeing the $96 and $120 regions.
As optimism for BTC persists in the short term, three-digit prices for SOL Coin may not be far-fetched if massive sell-offs are avoided. SOL has recently surpassed XRP in market cap rankings among altcoins, and it may now be setting its sights on Ethereum. Popular crypto analyst Evanss6 X highlights Solana’s focus on mobile accessibility as a key factor in attracting new users who are less concerned about the decentralization of the chain, giving Solana a competitive edge, especially for token and NFT launches.
Solana’s recent rally is a testament to its growth beyond meme coins, as evidenced by the expansion in decentralized applications on its network. Just three weeks ago, Solana’s TVL was at $654 million, holding a mere 1.4% market share. According to DefiLlama, this figure has now surged by 96% to $1.28 billion, providing a reason for long-term optimism for SOL Coin.