Why Is Solana Price Up 7% Today?

Amid the broader crypto market recovery, Solana price is showing major strength gaining 7% to $140 with daily trading volumes jumping 85% to $2.56 billion. The renewed investor interest in SOL comes amid strong network adoption and growing optimism. Interestingly, today’s bounce comes as Solana holders show signs of extreme fear.

Solana Price Rallies Amid Market Fear

Prominent crypto analyst Ali Martinez has observed signs of growing fear among long-term holders of Solana (SOL). The analyst pointed out that such periods of uncertainty unlock new opportunities for strategic investors.

“Historically, these are the moments smart money steps in,” Martinez noted, referencing the adage, “Be greedy when others are fearful”. This shows that the current Solana price surge amid value-driven accumulation could thereby mark the beginning of a sustained uptrend from here onwards.

Last week, CoinGape reported that the Solana network adoption has reached a fresh all-time high. On-chain data reveals that the Solana (SOL) network now boasts more than 11.09 million addresses holding the SOL token. This rise in address activity highlights increasing user participation within the Solana ecosystem.

Market Analysts Turn Bullish on SOL

SOL price today was up 6.97% at $139 with daily trading volumes surging 94.9% to more than $2.67 billion. As per the Coinglass data, the SOL futures open interest has surged 8.6% to $5 billion, with the 24-hour liquidations surging to $8.82 million.

With today’s price action, Solana has managed to break past the crucial resistance of $137, which could set the stage for future upward trajectory. Highlighting this significant breakout for Solana, popular crypto analyst Crypto Curb stated that it marks an end to the persistent downtrend since the January 20th highs, often referred to as the “Trump highs”.

The analyst suggests this breakout signals the start of a new upward momentum for SOL, forecasting a potential rally toward the $420 mark in the near future.

Co-Founder Anatoly Yakovenko Bets for L1s Against L2s

Anatoly Yakovenko, co-founder of Solana, has expressed skepticism about the necessity of Layer 2 (L2) scaling solutions, amid the Solana price rally. According to Yakovenko, Layer 1 (L1) blockchains can deliver superior performance, offering greater speed, lower costs, and enhanced security compared to L2 alternatives. In a message on the X platform, he wrote:

“L1s can be faster, cheaper, and more secure. They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs”.

His comments came while responding to a message from an Ethereum contributor rip.eth who stated that there’s no reason to build L1, considering that L2s are more faster and affordable.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.