Solana network witnesses spike in daily activity, bounces back 3x pre-FTX collapse
- Solana network development activity increased, implying developers are working to improve the blockchain network.
- Social volume of the Ethereum-killer token climbed, reflecting a spike in its popularity in the crypto community.
- Daily active wallets are now three times pre-FTX exchange collapse levels, fueling a bullish outlook among SOL holders.
Solana, the Ethereum-killer altcoin, was recovering from the decline in network activity and price post the FTX exchange collapse in November 2022. The altcoin network witnessed a recovery in its network activity, bringing it up to three times that of pre-FTX collapse.
Also read: Cardano whales continue accumulation awaiting three key developments in 2023
Solana daily activity exceeds pre-FTX collapse levels
The Ethereum-killer smart contract blockchain platform witnessed an increase in its development activity. This implies developers are working to improve the blockchain network consistently after the collapse of Samuel Bankman-Fried’s FTX exchange.
Solana’s funding rate on Binance registered an uptick. Crypto funding rate is a small percentage of a position’s value that traders pay to their counterparty at regular intervals. Funding rate is positive if the perpetual contract’s price is higher than the price on the spot exchange.
Interestingly, the asset’s popularity was established with the uptick in social mentions in the first week of January 2023 based on data from crypto aggregator Lunar Crush. Tom Dunleavy, a senior research analyst at crypto-focused market intelligence provider Messari highlighted the statistic in a recent tweet. Dunleavy shared a chart to substantiate his bullish view of Solana.
Solana daily active wallets data from Messari
Solana price outlook among traders is bullish
Experts believe Solana is on track for a bullish breakout, CryptoFaibik, an analyst and technical expert, believes SOL is primed for a 14.62% rally. Solana bulls are targeting the $15.20 level, and the smart contract platform’s token is on track to break out of the falling edge in its chart.
SOL/USDT price chart
As seen in the chart above, Solana is currently in a downtrend as the asset trades between two converging trendlines. The falling wedge indicates a bullish breakout in SOL, and CryptoFaibik expects a run-up in Solana price.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
