Solana's SOL price surged by 20% between September 28th and October 6th, but is this increase parallel to Bitcoin (BTC) or driven by other factors? After a US court approved the sale of $1.3 billion in failed exchange FTX products, SOL faced a period of turbulence before the price broke (or may recover)
Solana's SOL price surged by 20% between September 28th and October 6th, but is this increase parallel to Bitcoin (BTC) or driven by other factors? After a US court approved the sale of $1.3 billion in failed exchange FTX products, SOL faced a period of turbulence before the price broke (or may recover).
Solana Daily Price Index, USD.
The bankruptcy court has taken measures to ensure that the liquidation of FTX assets does not become a burden on the cryptocurrency market, requiring weekly sales through investment advisors in accordance with predetermined rules.
After the initial impact of a two month low of $17.34 in SOL prices on September 11th, bulls showed a certain level of confidence as SOL prices regained support at $20 on September 11th. September 29th. This trend coincides with a successful upgrade. By version 1.16, the SOL had been increased by 16% in the next 7 days.
The growth in the usage of decentralized applications (DApps) and the surge in the number of irreplaceable tokens (NFTs) on Solana also support the increase in SOL. The price of SOL is currently attempting to establish support at $23 and consolidate its position as the fifth largest cryptocurrency by market value (excluding stable currencies), surpassing ADA9.22 billion US dollars.
Solana's DApp and NFT market activity has surged
When analyzing networks focused on DApp execution, the number of active users should be of utmost importance. Therefore, we should first quantify the addresses related to smart contracts, which Vai serves as a proxy for the number of users.
SolanaDApp active address, 7 days.
Please note that the activity surge is consistent across all industries, including the NFT market, decentralized finance, collectibles, social media, and gaming. In addition, the number of active addresses that Solana interacts with DApp exceeds the Ethereum limit of 55230 during the same period.
Solana has attracted attention in the NFT market due to its cost-effective and scalable solutions, as data is compressed and stored offline. This makes it possible for more feasible mass production, as they require lower casting costs, allowing creators to reach a wider audience.
NFT sales per blockchain, 7 days.
According to CryptoSlam data, Solana Network's NFT sales have exceeded Polygon's in the past 7 days, with a cumulative value of $6.8 million. In September, the situation reversed, with Solana achieving a total revenue of $23.9 million, while Polygon Network achieved NFT revenue of $31 million.
Network upgrades increase privacy and reduce pressure on validators
The potential driving force behind SOL's recent 20% rise is the network upgrade to version 1.16 on September 28th, which introduces a "door system" to ensure the gradual activation of new features on the network. This process helps to maintain network stability and prevent problems caused by sudden changes.
Another significant change in this update is' secret transfer ', which uses zero knowledge proof to encrypt transaction details and enhance user privacy. This version also includes improvements to the RAM usage of the validator, adjustable data account size, and a mechanism to identify corrupt data.
Overall, this update brings higher efficiency, privacy, and security to Solana blockchain, marking an important milestone in its development.
Intense competition for Ethereum's second tier solutions
Although Solana competes with other blockchain networks, there is no doubt that the Ethereum Layer 2 solution has absorbed greater appeal in terms of locking in Total Value (TVL) and activities. For example, according to DefiLlama's data, Arbitrum holds $1.73 billion in TVL, while Optimism holds an additional $637 million, both of which are significantly higher than Solana's $326 million.
Despite Solana's continuous progress in privacy, scale, and security, external factors beyond the FTX bankruptcy tragedy are also playing a role, making it harder than expected to break through the $23 resistance level.
Ultimately, investors still primarily focus on the Ethereum ecosystem as it remains at the forefront in terms of developer numbers and decentralized applications.
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