Solana Surges 35% Over Three Weeks: Analysts Puzzled

Solana’s 35% price surge over three weeks in July 2023 has puzzled analysts looking at its potential causes.

Robots looking at the solana coins rising up from the ground.
Created by Kornelija Poderskytė from DailyCoin
  • Solana surged 35%, and analysts can’t explain why.
  • Santiment looks at several factors that could have contributed to the dynamic.
  • Recent Solana price movements put the surge into perspective. 

In the volatile crypto world, Solana (SOL) has recently made headlines with a significant price surge. Over the past three weeks, SOL jumped 35%, puzzling analysts and investors alike. 

Solana’s Surprising Surge

On Thursday, July 6, Santiment, a crypto market intelligence firm, published a report on Solana’s performance. The report highlighted a 35% increase in Solana’s price over the previous three weeks, surprising many. Currently, Solana is trading at $20, having recovered from its recent low of $13.9 on June 10. 

Solana's price chart.
Source: CoinMarketCap

While the report did not pinpoint a specific cause for the recovery, it suggested several contributing factors. These include increased social volume on Reddit and potential speculation in Solana’s Non-Fungible Token (NFT) community. 

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Still, analysts at Santiment did not find these factors sufficient to explain the price increase. In particular, they noted that the uptick in NFT volumes was nothing unusual for Solana. Moreover, the report noted a decline in Solana’s social dominance since the beginning of the year. 

Solana's price chart.
Source: Santiment

The report also noted that the trading volume for Solana had yet to show any significant increase. This indicates that other factors could drive the price surge, including the latest regulatory and technical developments for the network.

Solana’s Surge in Context: Recent Ups and Downs

Solana’s recent upswing signals its recovery from a major drop in June, following major regulatory issues in the US for Solana.

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On June 10, 2023, Solana and other well-known blockchains like Cardano and Polygon experienced a nearly 30% plunge. This drop came after the US Securities and Exchange Commission (SEC) called these tokens securities in its lawsuit against Binance

Following this news, multiple mainstream trading platforms, including Robinhood, signaled they would delist Solana for its US users. Still, despite this development, Solana managed to bounce back, recovering all its losses by early July. 

On the Flipside

  • Despite recent positive momentum, Solana is still 90% down from where it was in 2022. 
  • Despite the price drop, Solana’s ecosystem continues to expand. For example, Solana Labs recently entered the mobile market with its own Web3 Android phone

Why This Matters

Understanding the factors that drive price changes in crypto like Solana allows traders to make informed decisions and potentially capitalize on market trends.

Read about what Vitalik Buterin said about Solana’s troubles with the SEC:

Solana and Vitalik: Ethereum Founder Backs Rival Project vs. SEC

Read more about AI and its use cases in Web3 gaming:

AI Is Coming for Web3 Gaming: Telescope Labs’ New Dev Tool

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.