What’s Making Solana (SOL) Price Rally 12% In A Day?

The market capitalization of the “Ethereum-killer” Solana dropped by more than $1 billion in the last seven days leading up to New Year’s Eve; reaching its lowest level since February 2021. However, the Solana (SOL) price has surged back beyond the $11 mark in only a few days entering into 2023.

Solana (SOL) Price Jump

The altcoin increased by 12% over the previous twenty-four hours as almost $500 million flowed into SOL’s market capitalization, thus bringing its total value back up to $4 billion at the time of writing.

This comes after the positive support from Ethereum’s founder, Vitalik Buterin. Buterin tweeted the previous week that “smart people” have told him there is an “earnest smart developer community in Solana,” and that the network has a promising future now that “awful opportunistic money people have been washed out. ”

Buterin went on to say that he had high expectations that the Solana community will “have its fair shot to prosper.”

Some smart people tell me there is an earnest smart developer community in Solana, and now that the awful opportunistic money people have been washed out, the chain has a bright future.

Hard for me to tell from outside, but I hope the community gets its fair chance to thrive🦾🦾

— vitalik.eth (@VitalikButerin) December 29, 2022

It is also worth noting that the technical analysis of Solana’s two-hour indicators on TradingView is predominantly optimistic after having been bearish for days. The analysis indicates a “buy”signal by the summary gauge at 13, while a “strong buy” is indicated by the moving averages at 12. Oscillators in other places are advocating a neutral position at 8.

The BONK Memecoin

Adding more fuel to the positive sentiment surrounding the cryptocurrency, the community is suspecting a major development from a new memecoin on the Solana network. The token which goes by the ticker symbol BONK has already surged 135% in price and trading volume has zoomed past that of other major cryptocurrencies.

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Meanwhile, the token has seen wide acceptance as a viable payment method on the different marketplaces hosted by the Solana network. Moreover, Solana Foundation’s Head of Strategy & Communications Austin Federa recently showed his support for the dog-themed crypto project in a recent tweet.

Always love me some dog money

— Austin Federa (@Austin_Federa) January 1, 2023

As things stand, the Solana (SOL) price is currently being traded at $11.13. This represents an increase of 13% on the day, in contrast to a decline of 1.52% during the last week as per crypto market tracker CoinMarketCap.

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