1. Solana’s price has surged 45% in the last 24 hours and 70% in the past seven days.
2. This surge has been attributed to the increasing demand for decentralized finance (DeFi) projects and the growing popularity of the Solana blockchain network.
3. On-chain analytics firm Santiment speculates that a “short squeeze” may have contributed to Solana’s meteoric price increase.
The cryptocurrency Solana has recently seen a surge in its price, rising to $23.8 from its previous price of $8. This price increase is significant in that it is a 45% jump in a 24 hour period and a 70% jump in the past 7 days.
The reasons for this jump have been attributed to the increasing popularity of decentralized finance (DeFi) projects and the Solana blockchain network itself.
The Solana blockchain provides developers with a high-speed, low-cost platform to build decentralized applications (dApps). Its scalability, speed, and affordability make it an attractive option for DeFi projects that need to process large amounts of transactions quickly and at a low cost.
On-chain analytics firm Santiment believes that a “short squeeze” may have contributed to the surge in Solana’s price. A “short squeeze” is when the price of an asset suddenly rises due to heavy short selling. Santiment noted that “Solana has broken the $22 mark and has nearly tripled since bottoming off around $8 two weeks ago, Shorts pushed the bounce.”
Traders on Binance have continuously shown a bearish bias towards Solana since the beginning of the month. This has likely contributed to the sudden rise in price.
The surge in Solana’s price has been seen as an attractive investment opportunity. With its scalability, speed, and affordability, many investors are likely to continue to invest in the coin. It remains to be seen whether the surge in the price of Solana will continue or if it will level off.