From Bear Market to Bull: Solana's 386% Yearly Surge Explained
The Web3 industry continues to grow rapidly, and with the rise in Bitcoin's price, we can see most altcoins following its trend. This effect is noticeable across the crypto space, sparking excitement worldwide among crypto enthusiasts. In particular, one altcoin, Solana (SOL), has been showing impressive growth lately, making it an essential event for the entire cryptocurrency sector. In this article, we, the Coinmooner team, would like to take a closer look at the latest trends related to the rise of Solana and its prospects.
The surge in Solana's price surprised the cryptocurrency community when it was announced that Gary Gensler, Chairman of the U.S. Securities and Exchange Commission, would be stepping down in January 2025. This change coincides with when Donald Trump is set to resume his role as U.S. President. Following this news, the price of SOL jumped by 11% in one day, and its growth continued. Over the past week, the cryptocurrency gained 23%, and its value increased by 55% in the last month. What is especially impressive is the yearly growth of Solana — 386%, meaning its price has more than quadrupled in the last 12 months.
However, Solana faced a challenging period in 2022 as a bearish trend dominated the market. The price of SOL was negatively affected by technical issues, including frequent network outages that hindered its growth. Another blow to the cryptocurrency came with the bankruptcy of the FTX exchange at the end of 2022. This event heavily impacted the price of Solana because it was closely linked to FTX's activities and supported by its founder, Sam Bankman-Fried. As a result of this crisis, Solana's price dropped to $8. By March 2023, Solana was still at a low point after Bankman-Fried was sentenced to 25 years in prison for fraud and embezzlement of customer funds. But despite these challenges, the coin has bounced back and grown much stronger over the past two years.
Solana's Rise in 2024: How Political and Market Shifts Are Fueling Its Growth
Solana has significantly improved its position thanks to the continuous work of its developers, who have focused on enhancing blockchain stability. In addition to these efforts, the Solana Saga crypto smartphone was announced and released, marking a significant event for the entire Solana ecosystem. This move shows the Solana team's desire to go beyond traditional blockchain solutions and develop new innovative products for users. This approach has attracted more attention and confidence from investors.
Moreover, Matthew Siegel, head of digital asset research at VanEck, recently suggested that spot exchange-traded funds (ETFs) tied to Solana might be launched in the U.S. shortly. This could positively affect the coin's price, as introducing such tools typically increases trust and interest from large investors. Siegel expressed confidence that such changes could push Solana to further growth.
Despite all the positive news and impressive results, Coinmooner reminds everyone that it is essential to approach investments cautiously in cryptocurrency. The Web3 industry is high-risk, and it’s essential to stay alert to avoid potential losses. We strongly recommend that all crypto users follow best security practices, use modern methods to protect their assets and be aware of the ongoing risks of fraud, which unfortunately still exist in this space.
