Here’s Why Solana (SOL) Price is Up 80% in a Month, Outpacing Bitcoin and Ripple (XRP)
Solana (SOL) has emerged as the top-performing crypto asset, rallying to a level last seen in August 2022. The seventh-largest crypto by market cap surged nearly 14% over the past day, surpassing $44 on November 2nd.
The latest price action has pushed its yearly gains to 40% and its monthly gains to 80%. It has outpaced many of the leading coins, such as BTC, ETH, and XRP.
Solana’s Recovery Since FTX Debacle
Solana, which had attracted users and buzz with its high-speed, low-cost performance, lost a significant chunk of its value last year. Just as it was carving out a position as the top challenger to the backbone of decentralized finance (DeFi), no other player has felt the impact harder of the FTX disaster than the layer-1 blockchain.
Its recovery has been impressive so far. SOL has upped its game, trading at prices not seen in nearly 15 months. The native token of the layer-1 blockchain has long outpaced market leaders Bitcoin and Ethereum as it rallied to a new multi-year high. In the process, SOL gained over 343% in YTD.
The latest rally was primarily driven by the launch of Firedancer – Web3 development firm Jump Crypto – on the testnet. This new validator client for the network has been building since last summer and aims to ramp up speed, reliability, and validator diversity. The mainnet launch is expected to take place in the first half of 2024.
In contrast to Solana’s existing single validator client, Firedancer is designed to broaden the client ecosystem, bolstering the blockchain’s resilience. Alchemy’s report published earlier this year stated that Firedancer “has the potential to be a game-changer for the Solana network.”
“The Firedancer client aims to address existing limitations and improve upon the current Solana validator clients in several ways: enhanced concurrent transaction processing, sharding support, optimized P2P communication, and improved consensus protocol support.”
“Ethereum Killer” Outperforms Ethereum
Owing to increasing developer support, with its developer base expanding by over 40% year over year, and a growing community of dedicated Solana enthusiasts, the Solana vs. Ethereum debate has now become one of the most popular discourses on various social media platforms.
Furthermore, among its competitors, Solana-based products excelled, experiencing the most substantial increase in Assets Under Management (AUM) during the period, rising by 74.1% to reach $140 million in October.
Despite the introduction of new ETFs, Ethereum products, on the other hand, saw a decline, with a collective decrease of 5.45% in their Assets Under Management (AUM), reducing it to $6.35 billion, and their market share dropped to 20.1%. This represents a decrease from 22.6% during the same period.
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