Solana receives $1.5 billion in a week; will SOL reach $20 in January 2023?

Solana receives .5 billion in a week; will SOL reach  in January 2023?

The decentralised finance (DeFi) token Solana (SOL) was among the biggest losers in the crypto bear market of 2022, with the correction accelerating towards the end of the year. Part of the losses resulted from the platform’s close association with the now-bankrupt cryptocurrency exchange FTX. However, Solana appears to be turning the page as investor interest increases, culminating in the restoration of key positions in the asset. On January 6, SOL represented a market cap of $4.85 billion, which translates to an inflow of about $1.59 billion from $3.26 billion on December 30. In fact, the market cap on the weekly chart peaked at $5.16 billion on January 4, according to CoinMarketCap data.

SOL market cap chart Forks Daily

Notably, the Solana price has benefited from increased buying pressure, allowing the token to reclaim key support levels. SOL was worth $13.09 at the time of publication, representing a weekly gain of 43%.

SOL price chart Forks Daily

Solana and FTX’s concerns

It’s worth noting that Solana saw significant losses, falling to just $8, amid concerns about the sustainability of the ecosystem following its relationship with FTX and its founder, Sam Bankman-Fried (SBF). As SBF faced fraud allegations, the Solana network faced threats of a developer exodus, jeopardising the platform’s quest to establish itself as an “Ethereum (ETH) killer.” However, Solana’s management argues that the focus should be on network activity and not 

on price movements. In that sense, the potentially negative impact of FTX fallout made things difficult for Solana, considering that the network is beset by regular outages. Amid the concerns, Solana co-founder Raj Gokal shared the platform’s future, noting that there is a lot of activity surrounding L1 blockchains. Blockchains combine social networks, financial systems, nation-states, cultural movements, and payment networks.

Solana rallies as BONK skyrockets

With seemingly no potential bullish triggers from the FTX situation, the recent Solana price rally can be linked to the hype around Bonk (BONK), a Shiba Inu (SHIB) inspired meme cryptocurrency communities and fungible token creators (NFTs), and has since seen an increase in valuation. Consequently, the meme coin’s impressive returns are a fundamental factor in SOL’s price as the broader market remains oppressed. At the same time,

After BONK’s rally, a previous Finbold report ranked the token among the top five most popular cryptocurrencies in January 2023. Disclaimer: The content of this website should not be considered investment advice.

Investing is speculative. The investment puts your capital at risk.

 

 

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