SOL Price Jumps 5.5% As Solana Unveils Token Extensions

While the broader cryptocurrency market has been still consolidating, The Solana (SOL) price registers a 5.5% jump shooting all the way to $88.43 with a market cap of $38.2 billion. The SOL price jump comes as the Solana blockchain unveils a new token extension with the SPL standards.

Is A SOL Price Revival on The Cards?

Solana’s native cryptocurrency, SOL, experienced a notable decline, reaching $88. The token faced strong resistance at $102 on January 17, leading to a 23% correction that brought it to a five-week low of $78.60 on January 23.

Despite this, SOL quickly rebounded, surging by 10% within 24 hours and temporarily halting the bearish trend. Traders are now scrutinizing the recovery, evaluating whether it is supported by strong fundamentals and if SOL price can reclaim levels above $90, and even beyond $100.

Furthermore, Firedancer, an emerging third-party validator built by Jump Crypto, is currently in the development phase. This initiative seeks to enhance Solana’s processing capabilities to potentially handle millions of transactions per second and introduce support for parallel processing, also known as sharding.

It's interesting to see how reliable Solana has been since the rough patch in 2022, while remaining incredibly performant as usage surged and it dominated competitors in most metrics.

The network will continue to improve, and @jump_firedancer is coming.https://t.co/XMVo2GePuJ pic.twitter.com/QDH2iX0Fgf

— R89 (@R89Capital) January 22, 2024

In January this month, Solana also displayed resilience in its key decentralized application (DApp) metric, with the network’s total value locked (TVL) reaching 15.3 million SOL. Despite a 28% price decline for SOL over the past 30 days, the amount deposited in its smart contracts is nearing a three-month high.

Solana SPL Token Extensions

As per the announcement on January 24, token extensions offer a wide range of ready-made solutions for advanced token functionality, catering to developers, financial institutions, enterprises, and Solana-native development teams.

Leading industry players Paxos and GMO-Z.com Trust Company Inc. (GMO Trust) are at the forefront of embracing token extensions. The Solana Foundation revealed that these companies are actively “leveraging the benefits” of token extensions to facilitate the issuance of stablecoins on the Solana blockchain.

The initial series of successful airdrops of Solana SPL tokens on centralized exchanges occurred with the introduction of Jito’s JTO staking solution and the BONK memecoin in December 2023. This event led to an increased demand for SOL tokens as users eagerly participated in various airdrops, encompassing both confirmed and speculative opportunities.