Investors are bullish on Solana following the network’s recent Visa and Shopify partnerships. FTX, which holds $1.16B in SOL, also plays a part.
SOL, the native token of the Solana network, has seen strong bullish momentum over the past week, gaining 26% in seven days.
At the time of writing, SOL is trading at $24.16, a 10% jump from the previous day.
Related: Solana Explained | A beginner’s guide
Solana’s total value locked (TVL) has also reached its highest level in 2023, clocking in at $327.49M – a 24-hour increase of 4.15%.
The network’s TVL has increased by nearly 40% since January 1, indicting an upcoming bull run.
What’s behind the surge?
Community sentiment within the Solana ecosystem has been strong over the past few weeks. Despite SOL prices still being 30% lower than its annual high, the wider Solana network has made significant advancements, inspiring optimism in investors.
One such advancement is a lucrative integration with e-commerce giant Shopify, which powers millions of online storefronts. The integration enables users to purchase goods and services via Shopify-powered stores through Solana Pay – the network’s peer-peer payment protocol.
Read more: Solana Pay integrates with Shopify, opening gateway to Web3-based daily commerce
In September, payments behemoth Visa also tapped Solana to enable USDC merchant payments, driving SOL upward by 6%.
Another potential factor linked to the surge is the pending trial of Sam Bankman-Fried (SBF), founder and former CEO of FTX – the crypto exchange that spectacularly collapsed in November 2022.
While SBF currently awaits trail in prison, John J. Ray III, the defunct exchange’s new CEO, has been moving swiftly with bankruptcy proceedings.
Read more: SBF trial starts on October 3. Here’s what you should know
On September 14, the US Bankruptcy Court for the District of Delaware gave FTX permission to start selling its assets in batches. The estate holds $3.4 billion in digital assets, but its largest holding by far is SOL, of which it holds $1.16 billion.
While roughly $400 million of FTX’s SOL is unlocked, the estate has approximately $860 million (44 million SOL) currently staked. This balance will be gradually unlocked over the next four years.
SOL isn’t the only altcoin enjoying ‘pumptober’, or ‘uptober’, as it’s already been dubbed.
ADA is also up by 10% over the past week; XRP by 5.6% and TRX by 6.2%.
Read more: Bitcoin mining firms may be more profitable than Bitcoin itself in 2024: Matrixport
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
