SolanaCryptocurrency Sol, which saw a 94% decline in 2022, has made a comeback, attracting the attention of digital asset investors.
SOL has risen in price nearly 800% since December 2022, Bloomberg I mentioned Thursday (December 21).
One of the main reasons for Solana’s emergence lies in technical improvements to the blockchain, according to the report. The blockchain has undergone major upgrades, addressing previous network outages and performance issues. Since February, Solana has not experienced any network incidents.
Solana’s revival can also be attributed to renewed interest in non-probable tokens (NFTS), the report said. While Ethereum was previously the dominant blockchain for NFTS, both Bitcoin and Solana have surpassed Ethereum in NFT trading volume.
It’s called a new NFT market tension It appeared on the Solana platform, where it received 57% of trading volume compared to Magic Eden’s 37% in the last 24-hour period, according to the report. Tensor offers an NFT experience similar to professional trading and allows users to profit from rapid price changes.
However, Solana’s return is not without risks and speculative elements, according to the report. One notable factor is the popularity of a mimetic solana called bonk. Created as a joke, Bonk has gained significant attention and is up about 400% in the past month, with a market cap of $1.2 billion.
The anonymous founders and unclear motives behind Punk contribute to its highly speculative nature, the report said, leading some experts to compare it more to gambling than to investing.
Solana’s return also reflects broader market sentiment, according to the report. The Federal Reserve’s recent pivot toward interest rate cuts has caused traders to return to risk assets, including cryptocurrencies. Any significant change towards risk assets could significantly impact the crypto market, which is often viewed as the riskiest asset class.
Pymnts reported on Wednesday (December 20) that it’s all Crypto market It has once again captured the attention of investors and enthusiasts, as evidenced by a surge in the popularity of Memecoins and NFTS.
As the market experiences a comeback, large coins like Solana and Avalanche have been among those seeing a rise in value and become some of the top gainers this year.
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