Solana Price Hits New 2023 High: What’s Driving the Rally?
Impressive Surge in SOL Token
Solana’s native token, SOL (SOL), saw a remarkable 22% surge on Nov. 10, surpassing the $54 mark for the first time since May 2022. This surge coincided with the ongoing selling of SOL tokens by FTX’s bankruptcy estate. The Delaware Bankruptcy Court approved the sale of the failed exchange’s assets, including 55.75 million SOL, in September 2023.
Investor Enthusiasm and Limited Impact
Investor enthusiasm for SOL’s price increase may be attributed to the fact that some of the tokens from the bankruptcy proceedings are either vested or locked. Furthermore, there’s a weekly sale limit of $100 million imposed as part of the FTX liquidation plan. In essence, the initial fear of asset liquidation has transformed into hope as investors realize the limited impact of the sales.
Key Market Indicators
As seen in the SOL futures average funding rate, 8-hour chart, there has been a significant uptick in SOL’s performance. Additionally, the network total value locked in SOL terms and total DeFi active address in 30 days have provided valuable insights into the token’s growing market presence.
These developments have undoubtedly contributed to the positive sentiment surrounding SOL’s recent surge, offering a deeper understanding of the factors driving the token’s rally in 2023.
