The Solana ($SOL) price has experienced a major rally since mid-October. Since October 19, 2023, the price of SOL has surged from $23.43 to the current price of $43.23 as of November 2, 2023.
The Solana price rally picked up steam on October 30, 2023, when the price surpassed the key resistance level of $32. One day later, it broke through the $35 resistance level and began a new rally to $38.
Once it broke past that level on November 1, 2023, the price surged to a high of $46.25 later that day before it pulled back to around $43. Since then, Solana has been trading consistently above the $43 level.
Firedancer Testnet Fuels Solana Surge
The launch of the Solana Firedancer Testnet has played an important role in the recent SOL price surge. The Solana Foundation’s Executive Director, Dan Albert, unveiled Firedancer at the Solana Breakpoint 2023 conference. Firedancer features a new validator client. Its goal is to boost Solana’s speed and reliability and diversify the validator base.
Firedancer also has a feature that makes it possible to run the chain using multiple code sets. Consequently, there is less chance of a bug causing widespread network damage. If there is an issue with one implementation, it will be isolated from other implementations. The redundancy will ensure Solana is more secure and resolve the issue of occasional widespread network outages.
Major Announcements at Solana Breakpoint 2023
Besides Firedancer, the Solana Foundation announced numerous other achievements. For instance, they revealed Solana’s integration with Google Cloud BigQuery, an AI and machine learning-based data warehouse. The integration will bring about new data utilization and analysis capabilities to Solana. Additionally, Smart Wallet capabilities are now on Solana, thanks to efforts by Fuse Wallet.
The SOL price surge comes amidst concerns of sell pressures from FTX-related wallets, which have recently unstaked their SOL holdings. Those wallets held SOL valued at around $67 million. After unstaking, it has found its way to various crypto exchanges.
As SOL prices surge, the bankruptcy estate overseeing the dissolution of FTX-Alameda has moved nearly $35 million days. If they start selling the SOL in the next few days, it could cause the price to drop significantly. However, the community seems unmoved by the move, and the price surge continues. In 2023 alone, the price of SOL has jumped 350%. It has come as a huge surprise to some crypto market analysts who had written it off after the collapse of FTX-Alameda Research.
DeFi Surge
Bitcoin has recently been in a rally, reigniting interest in DeFi. Thus far, Solana is leading this surge. The total value locked (TVL) on the network has surged significantly from $324.27 million at the start of October to the current level of $442.62 million as of November 2, 2023. The main driver of this surge is Marinade Finance, a staking protocol that saw its TVL rise nearly 180% in October 2023.
Should You Buy Solana?
Technological advancements are behind Solana’s recent surge. That is a great sign for anyone looking for a long-term, reliable project with growth potential. It is worth noting that despite the recent surge, SOL is still trading at an 83.34% discount on their ATH of $260.06, which it achieved on November 7, 2021. Since then, the developer team has made numerous upgrades to the network.
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