Solana (SOL) is a decentralized finance (DeFi) currency, which means it is used in financial transactions on decentralized, blockchain-based platforms. In the seven days leading up to December 30, SOL experienced a decrease in its market capitalization, or the total value of all SOL in circulation, of over $1 billion.
However, on January 2, the price of a single SOL increased to $11.13, representing a 13.88% increase in the past 24 hours but a 2% decrease over the previous week. This means that the value of SOL increased significantly over a short period of time, going from around $10 to over $11, and reaching a peak increase of 15% in the last 24 hours. This sudden increase in value could be due to a variety of factors, such as increased demand for SOL or a change in market conditions.
Solana surges at the beginning of the year
During the recent increase in the value of Solana, the total market capitalization of SOL, or the total value of all SOL in circulation, increased by approximately $500 million. This brought the total market capitalization of SOL up to over $4 billion at the time of publication.
Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. The technical analysis of Solana’s 2-hour gauges on TradingView, a financial market analysis platform, is primarily positive, with a summary gauge rating of “buy” at 15 and moving averages rated “strong buy” at 13.
However, the oscillators, which are indicators used in technical analysis to help predict future price movements, are rated as neutral at 8. This means that, according to this analysis, the overall outlook for the SOL price is positive, but there are conflicting signals from the oscillators.
The uncertainty surrounding Solana
There is currently uncertainty surrounding Solana (SOL) and its future due to its close connection to the cryptocurrency exchange FTX, which has faced controversy. This has caused some in the crypto community to lose confidence in SOL’s future prospects. However, Delphi Digital, a financial analysis firm, tweeted on January 1 that Solana processes more transactions than any other blockchain, indicating that it is a popular and heavily-used platform.
Final thoughts
Ethereum co-founder Vitalik Buterin has also expressed support for Solana, stating that he hopes the community will be able to thrive after “opportunistic money people” leave the blockchain. Investors are still determining whether the relationship between Solana and FTX will negatively impact SOL’s future. In the past, the Solana team received significant support from Bankman-Fried and FTX when the exchange was operating at its highest levels.
