Solana SOL token value grows by more than 330% YTD to 14-month high

Solana’s SOL token is the best-performing top 20 digital asset by market capitalization in the last 24 hours, according to CryptoSlate’s data.

SOL’s price climbed to a 14-month high of $46 during the reporting hours before retracing to its current levels of $43.5904 as of press time, per CryptoSlate’s data.

This price movement continues a largely positive run that has persisted for most of the year, with SOL gaining more than 330% of its value on the year-to-date metric. For context, the digital asset recorded an impressive 87% growth during the past month alone, according to Tradingview data.

DeFi

Data from DeFillama shows that decentralized finance (DeFi) activities on Solana have picked up extensively amid the current market rally.

According to the data aggregator dashboard, the total value of assets locked on the Solana blockchain has reached a new yearly high of $437.49 million as of press time. This represents a 107% growth from the $210.47 million recorded on the first day of the year.

Additional data from DeFillama also shows that Solana has been able to maintain an average user base of more than 100,000 all year long.

Meanwhile, it should be noted that these current numbers pale significantly against what the network had recorded during the bull market of 2021 when its TVL peaked at nearly $10 billion and averaged more than 300,000 users early last year.

FTX cloud still hangs

Solana’s recent resurgence starkly contrasts the bearish sentiments that gripped its ecosystem following the unexpected collapse of FTX last year.

Back then, many market observers expressed concerns that Solana would struggle to regain its former glory, as FTX and its affiliate, Alameda Research, had played a pivotal role in its growth.

However, Solana has successfully repositioned itself as a major player in the cryptocurrency industry. It has achieved this through significant partnerships with established institutions such as Visa and Shopify.

Furthermore, asset management firm CoinShares reported that Solana-related investment products have become the preferred choice for investors over altcoins like Ethereum.

Despite these positive developments, the looming shadow of FTX’s bankruptcy continues to affect Solana.

FTX still holds over $1 billion worth of SOL tokens, and the potential impact on Solana’s price remains a concern if the bankrupt firm offloads these holdings.

Recent signs suggest that FTX might be selling some of its SOL holdings, as a substantial amount has been moved to exchanges in the past week.

Reports from CryptoSlate further show that the collapsed firm has begun unstaking some of its SOL tokens as part of its ongoing bankruptcy proceedings.