Solana’s remarkable rally has continued this week, with the token’s value crossing above $50. The 7th largest cryptocurrency’s market capitalization is almost overtaking that of Circle’s stablecoin USDC. According to data from CoinGecko, Solana’s market cap grew by $3.3 billion over the past 24 hours to $21.2 billion as of writing. USDC, on the other hand, has a market valuation of $23.8 billion.
Sol is selling for $53.7 at press time after posting 24-hour gains of 15%. The crypto asset is up 43% this week. Notably, Solana has seen gains of 126% over the past 30 days. No other top ten crypto asset has recorded such price growth within that timeframe.
What is Causing Solana to Rally?
So, what’s the reason behind Solana’s comeback? Experts have attributed SOL’s growth to rising interest from big traditional players.
Last November, Solana dropped below $10 after crypto exchange FTX announced filing for bankruptcy protection. The token was the most affected since the exchange founder Sam Bankman Fried, who is currently charged with several criminal counts, was a big proponent of the Solana ecosystem. He even built a marketplace for Solana-based non-fungible tokens (NFTs).
However, following interest from e-commerce platform Shopify and Payments company Visa, Solana has risen tremendously, touching levels it traded last in May 2022. The two firms have picked the Solana blockchain over Ethereum, arguing it’s cheaper and quicker.
Moreover, crypto analysts believe a short squeeze is another factor driving Solana’s price up. When SOL was mentioned severally during the Bankman-Fried trial, the token experienced a price drop, prompting traders to short-sell. However, the growing SOL price has forced those traders to exit their positions, thus causing a short squeeze.
Despite the recent rally, Solana is still trading 83% below its all-time high of $258 set in late 2021.
Price Analysis: LINK, BTC, ETH
Another top 20 token witnessing a massive rally this week is Chainlink. The crypto asset trades for $14.79 after growing by 36% over the last seven days. Additionally, it is up 102% in the past 30 days.
The two biggest cryptocurrencies, Ethereum and Bitcoin, are also in the green this week, with the former posting gains of 13% to trade at $2,049, while the latter changes hands for $36,972, following a 7-day growth of 7.5%.
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