Here’s What Fueled Solana’s (SOL) Massive 50% Rise in Hours: Details

SolIt is a native asset of the Solana blockchain.

While traders are celebrating their comeback, #bitcoin (over $21,000) and #ethereum (which set us back over $1,550), #solana A real star as the weekend begins. +22% up in the last 2 hours alone, $SOL Backed by liquidated shorts. https://t.co/ibrLUL8beD pic.twitter.com/58AfM44qPu

Santiment (@santimentfeed) January 14, 2023

Traders celebrate the resurgence of Bitcoin (back above $21,000) and Ethereum (back above $1,550), but Solana is the real star as the weekend begins. Up 22%, SOL is gaining momentum, with liquidated shorts santimento analyst wrote.

At the time of this article’s publication, SOL is trading at $22.79, up 31% in the last 24 hours. Solana is up 70% weekly, according to coin market capitalization data.

santimentoan on-chain analysis firm believes that Solana’s surprising rise may have been caused by a “short squeeze”. , is a sharp increase in the price of an asset.

In the published chart, Santiment writes:

According to the on-chain analytics firm, Solana has consistently seen a short-selling bias by Binance traders over the past month. We noted that an even larger percentage of SOL shorts started when the price bottomed out on December 30. SOL price has risen 170% since hitting this bottom.

Other factors

After weeks of blockchain upheaval in the aftermath of the Sam Bankman-Fried and FTX debacle, the Shiba Inu-themed BONK token has taken center stage in the Solana ecosystem.

BONK recently announced the formation of BonkDAO. The initial BonkDAO Council was drawn from among esteemed Solana community members across DeFi, art, and NFT initiatives.

According to a recent report published by Citi Research, activity on the Solana blockchain remains very active. Several key metrics, such as active addresses and daily non-fungible token (NFT) volumes, have recovered to pre-FTX crash levels, which may indicate user relief. .