After losing over 84% of its value in 2022, Solana has started the year with a bang. According to CoinGecko, Just two weeks into 2023, the SOL price has doubled, recording a 64% increase in the past seven days.
On top of that, Solana saw its highest trading volume for the first time since the week of the FTX collapse, which crashed the entire crypto market. It is an excellent rebound for Solana, having hit a two-year low of $8.23 last December and dropped out of the top twenty cryptos, according to CoinGecko.
In the past 24 hours, Solana briefly pushed Polygon (MATIC) out of the top ten coins by market capitalization after reaching the $9 billion mark on Sunday afternoon. Moreover, the SOL price is at its highest point since the downfall of FTX.
BONK Buzz Continues to Boost SOL Price
Solana’s recent rally is a result of BONK. Crypto enthusiasts have hyped the Solana-based meme token since it launched in December 2022. Additionally, many coin collectors were excited about the entry of another dog-themed coin in the marketplace, which already has Shiba Inu and Dogecoin.
Also read:As a result, BONK drove the SOL price to a seven-day high at the start of 2023. Furthermore, the BONK token recorded a 3,200% increase in price in the first week of the year, reaching an all-time high of $0.00000486, as per CoinGecko.
The team behind BONK decided to burn over five trillion tokens to minimize supply, but more was needed to keep the BONK token on an upward trend as its price dropped by 70% last week and currently has a market cap of $58 million. Meanwhile, the BONK token has risen by 9% in the past 24 hours, as per CoinGecko.
SOL Price Reacts to Helium Migration to Solana Announcement
Another factor contributing to the SOL price pump could be the long-awaited Helium migration to Solana. The migration announcement came last September, and at that time, the SOL price saw a small increase while Helium’s native token decreased in value.
However, the value depreciation did not faze the Helium developer, Nova Labs. Instead, the developer said they were more focused on the long-term benefits that Solana has to offer. Amir Haleem, the Nova Labs CEO, praised Solana’s transaction speed citing that it makes development work easier.
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