Solana (SOL) has recently made waves in the volatile crypto market with a remarkable price surge. Over the past three weeks, SOL has witnessed a staggering 35% increase, leaving analysts and investors puzzled as they try to unravel the factors behind this unexpected surge.
Solana’s Impressive Recovery: After hitting a low of $13.9 on June 10, Solana has managed to stage a remarkable recovery.
Currently trading at $20, the cryptocurrency has defied expectations and regained all its losses from the June drop. This recovery comes in the wake of major regulatory issues faced by Solana and other prominent blockchains like Cardano and Polygon.
While the exact cause of Solana’s surge remains elusive, a recent report by crypto market intelligence firm Santiment sheds some light on potential contributing factors.
The report points to increased social volume on Reddit and speculation within Solana’s Non-Fungible Token (NFT) community. However, analysts at Santiment find these factors insufficient to fully explain the significant price increase.
The report also highlights a decline in Solana’s social dominance since the beginning of the year, suggesting that there may be other influential factors at play.
Furthermore, the trading volume for Solana has not experienced a significant surge, indicating that additional regulatory and technical developments may be influencing the cryptocurrency’s recent price movement.
Solana’s surge should be viewed in the context of its recovery from a major drop in June triggered by regulatory issues. The US Securities and Exchange Commission (SEC) labeled Solana and other tokens as securities in their lawsuit against Binance, leading to a market-wide decline.
Furthermore, the delisting of Solana from mainstream trading platforms added to the uncertainty surrounding the cryptocurrency. However, Solana has managed to defy the odds and regain its losses in an impressive comeback.