Solana (SOL) has been experiencing a surge in its price as the overall crypto market gains momentum and investor interest in meme coins on the Solana blockchain grows. This bullish sentiment has led SOL investors to anticipate a potential price movement that could push the token to a new record high above $200.
Coinciding with the rise in SOL prices, there has been a significant movement of the token on-chain. On March 29, approximately $332 million worth of SOL tokens, equivalent to 1,757,028 SOL, were transferred between unknown wallets, as reported by Whale Alert.
In the midst of this price rally, Solana may be impacted by the unfolding situation with the collapsed FTX crypto exchange. The bankrupt trading platform is set to sell its balance of 41 million SOL to institutional investors at a discounted price of about $60. This event is expected to have an influence on SOL’s market dynamics once these tokens enter circulation.
On-chain metrics also suggest a bullish outlook for Solana’s price. According to data from the blockchain analytics platform Artemis, Solana’s weekly transfer volume for stablecoins has surged to $364.7 billion, surpassing Ethereum’s reported volume of $152.99 billion as of March 30. This supports Solana’s ambition to position itself as a viable competitor to Ethereum in the decentralized finance (DeFi) space.
Another factor that could impact SOL’s price is the upcoming release of the Solana Saga smartphone. The demand for the device, which is said to be crypto-friendly, has contributed to the recent rally in the token.
However, Solana faces challenges on its path to a new all-time high. Concerns persist about network outages that could deter developers from utilizing the platform. Additionally, meme coins launched on Solana, despite their role as catalysts for the recent price increase, lack underlying fundamentals and may experience corrections.
At the time of writing, Solana is trading at $196, recording daily gains of nearly 7% and weekly gains of 12%. It remains to be seen how these various factors will shape SOL’s future performance.
Disclaimer: This article does not constitute investment advice and investing in cryptocurrencies carries a certain level of risk.