Solana (SOL) Shows Significant Growth Amid Cryptocurrency Investor Attention
Date: 2023-11-06 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Gritting Its Teeth and Moving Forward: Solana (SOL) Overcomes Challenges and Leaves Competitors Behind
In recent months, the cryptocurrency market has experienced turbulent times, and Solana (SOL) has emerged as one of the cryptocurrencies capable of overcoming challenges and demonstrating impressive growth. Analytical company Kaiko notes that net purchases of SOL on the American trading platform Coinbase have surged since the beginning of the bull run in October 2023, reaching a remarkable figure of 2.2 million SOL.
This impressive growth of SOL comes after a period of adversity. Following the collapse of the FTX cryptocurrency exchange last year, the price of SOL remained below the $10 mark for some time. However, in recent months, activity on the Solana network has significantly increased, especially in the realm of liquidity token protocols like Jito.
Experts have also noticed that Binance lagged behind Coinbase in terms of SOL trading volumes until early November. However, with the arrival of November, market purchases of SOL accelerated, eventually reaching a cumulative volume delta (CVD) of 1.9 million SOL since October 18. Meanwhile, South Korea's largest exchange, Upbit, sold approximately 4 million SOL in the Asian market. This underscores that the Asian market has its unique characteristics and differs from others.
As a result, this year, SOL has become one of the most traded altcoins on exchanges available in the United States, surpassing all leading competitors. Despite a challenging start to 2023 for alternative currencies, things are now starting to fall into place.
Solana Overtakes Ethereum and Emerges as the Top Alternative
Since the start of the bull run in October 2023, Solana (SOL) has demonstrated remarkable growth that has allowed it to surpass Ethereum (ETH) in several aspects. As an alternative Layer 1 (L1) blockchain, SOL is often compared to ETH, but starting from September of this year, Solana has significantly outperformed Ethereum.
The ratio between SOL and ETH has surged from 0.011 to almost 0.025, surpassing the levels registered shortly before the FTX exchange collapse. This indicates that investors are increasingly paying attention to Solana as a promising alternative to the world's largest cryptocurrency.
According to data as of November 6, 2023, the SOL price settled at $40.26, with the digital currency's market capitalization reaching $16.9 billion. Daily trading volumes reached $901.24 million, confirming the growing interest of investors in this cryptocurrency.
