The price of Solana has increased by 5.68% in the past 24 hours, and it is presently trading at $25.8 with a market valuation of $9.75 billion. This indicates that bulls are active once again in the market for Solana.
Currently, the value of SOL has increased by the most relative to the market cap of the top 50 cryptocurrencies.
As a result of the price increase that occurred earlier today, SOL has increased its weekly gains to more than 28.71 % and is currently the 11th largest cryptocurrency when measured by market value. Bitcoin leads the pack with $ 479 Billion, and Ethereum follows with $ 207 Billion in market caps. Tether USDT is at the third spot.
Since the FTX collapse, this is the first time Solana's market valuation has come close to reaching $10 billion. As a result of the collapse of the FTX, Solana saw a significant correction, and this is because the cryptocurrency exchange utilized SOL as its reserve currency.
Despite this, they made a significant number of sales of SOL on open markets to safeguard the native FTT tokens.
According to one statistic (1), during the last twenty-four hours, a stunning amount of Solana futures contracts totaling $5.86 million were closed off. Despite the latest price increase, SOL is still down an astounding 90% from its all-time high of $259.96, which it reached in November 2021.
What is Fueling the Solana Bull Run?
The imminent transition (2) of the Helium networks to the Solana blockchain is the primary factor that has caused the significant increase in the price of Solana. The transfer of migration to the Solana network is scheduled for March 28, 2023, according to the proposal made by the Helium Foundation.
Internet of Things (IoT) gadgets can use Helium's long-range communication thanks to the decentralized network of "hotspot" devices that make up Helium.
As a result, Helium developers can focus on adding more hotspots after the merger with Solana rather than maintaining the blockchain. Because of Solana's high throughput and scalability transaction capabilities, Helium decided to relocate.
In their report, the Helium Foundation stat, "Solana has the capacity and speed needed to begin taking on the blockchain obligation, with the capacity to handle tens of thousands per second, coupled with its huge ecosystem of devs, apps, and system integration. This allows the Helium core developers and community to concentrate on developing secure networks and facilitating utility upon those networks."
In addition to the significant update brought about by the move to Helium, the high NFT activity observed on the Solana blockchain may be another reason for today's rally.
During the past day and a half, revenues at the Solana-based NFT had skyrocketed by 12.68% to reach $2.63 million. Over this same period, sales of Ethereum-based NFTs saw a steep 10.57 percent drop.