Solana (SOL) has surprised the crypto world with a remarkable 35% surge in the past three weeks, leaving analysts and investors puzzled about the reasons behind its impressive performance.
According to a recent report by Santiment, a leading crypto market intelligence firm, Solana’s price has experienced a substantial increase over the last few weeks. The token, currently trading at $20, has managed to recover from its recent low of $13.9 on June 10.
While the report highlighted factors such as increased social volume on Reddit and potential speculation in Solana’s Non-Fungible Token (NFT) community, analysts at Santiment found these factors insufficient to explain the surge.
They noted that the uptick in NFT volumes was not unusual for Solana and observed a decline in the token’s social dominance since the beginning of the year.
Furthermore, the trading volume for Solana has not shown any significant increase, indicating that other factors may be driving the price surge. These factors could include recent regulatory developments and technical advancements within the Solana network.
It’s important to consider the context of Solana’s recent performance. The token experienced a major drop in June following regulatory issues in the US, triggered by the Securities and Exchange Commission’s (SEC) classification of tokens like Solana, Cardano, and Polygon as securities in its lawsuit against Binance.
This led to various trading platforms, including Robinhood, announcing the delisting of Solana for US users. However, despite these challenges, Solana has managed to bounce back and recover all its losses by early July.
