Popular altcoin solana leading the recent recovery in the crypto market. Solana price surpassed the psychological $100 level, supported by the strong increase in trading volume. For this reason, analysts were encouraged by this rise and predicted that it would rise to $150.
So why did Solana start to rise? Here are 5 reasons behind the Solana price rally.
Key Reasons Behind Solana Price Rally
Solana-Based Projects Are in Demand
The crypto market recovery is being led by many areas, including Solana-based projects, decentralized exchanges, lending protocols, staking, NFTs, and other areas.
From Solend, Marginfi and Kamino lending protocols, to Marinade Finance and Jito staking protocols, and NFTs like Mad Lads and Tensorians, the spot Bitcoin is making waves in the crypto market despite the ETF craze. Moreover, Helium and Render Network are also growing rapidly.
Jupiter DEX and Airdrops
DEXs Jupiter, Orca and Drift are witnessing huge trading volumes. Jupiter in the middle of WEN and JUP airdrops crypto- It even overturned Uniswap V3, the leader in trading volume. Recent airdrops have been hugely successful, causing Solana to flip Ethereum on multiple fronts.
Jupiter co-founder Meow announced on January 29 that they will go to X and airdrop every year, starting the process every November and continuing until January. However, final participants will not be included in the upcoming airdrop round.
Solana’s 2024 Road Map
While its peers look to layer-2 for growth, Solana co-founder Anatoly Yakovenko prioritizes a commitment to Layer-1 scaling for unparalleled blockchain efficiency and innovation.
Moreover, developers in the Solana ecosystem can promise a year of innovation and growth. Solana’s complete rebuild of its authenticator client, Firedancer, promised to optimize network, runtime, and consensus components.
Success of Solana Saga Mobile
In a significant development, following the success of the Saga smartphone, Solana Mobile announced that it plans to introduce Saga Chapter 2. Saga’s successor will have new hardware and be cheaper in terms of price.
The recent BONK airdrop hype resulted in massive purchases and out-of-stocks of the Saga smartphone. People flocked to the BONK airdrop as the price increased by over 3000% in a month.
SOL Price Breaks Multiple Supports
Ali Martinez predicted that Solana price would reach $113 as it broke above the descending channel. On the other hand, analyst Michael van de Poppe stated, “It is ready to continue upward.” He predicts SOL price will continue to rise towards $140 as a higher timeframe support test at $80 provides support.
SOL price is up 7% in the last 24 hours and is currently trading at $104.77. The 24-hour low and high price are $95.68 and $104.43 respectively. Additionally, trading volume increased by 40% in the last 24 hours, indicating increased interest among traders.
