Solana (SOL) price experienced a 20% gain between Sept. 28 and Oct. 6, but is the rally a tandem move with Bitcoin (BTC) price or is it being driven by other factors. Prior to the price breakout, or perhaps, it’s recovery, SOL faced a turbulent period after a U.S. court approved the sale of $1.3 billion in SOL from the bankrupt exchange FTX.
The bankruptcy court has taken measures to ensure that the liquidation of FTX assets won’t become a burden for the crypto market, demanding the sale to occur through an investment adviser in weekly batches in accordance with pre-established rules.
Following the initial impact, which drove Solana’s price down to a 2-month low of $17.34 on Sept. 11, some degree of confidence among bulls emerged as it re-established the $20 support on Sept. 29. This movement coincided with a successful upgrade to version 1.16, boosting the SOL token by 16% over the next 7 days.
Solana’s rally was also supported by growth in decentralized applications (Dapps) usage and increased nonfungible token (NFT) volumes. Solana’s price is now attempting to establish a $23 support and consolidate its position as the fifth-largest cryptocurrency (excluding stablecoins) by market capitalization, surpassing Cardano’s $9.22 billion.
Solana’s DApp and NFT market activity surges
When analyzing networks focused on Dapp execution, the number of active users should be a top priority. Therefore, one should begin by quantifying the addresses involved with smart contracts, which serve as a proxy for the number of users.
Notice that the increase in activity was consistent across all sectors, including NFT marketplaces, decentralized finance (DeFi), collectibles, social, and gaming. Furthermore, Solana’s active addresses engaging with Dapps exceeded those of Ethereum in the same period, which were capped at 55,230.
Solana has been gaining traction in the NFT market due to its cost-efficient and scalable solution, as data is compressed and stored off-chain. This allows for more viable production in larger quantities, as they require lower minting fees, enabling creators to reach wider audiences.
Over the past 7 days, the Solana network surpassed Polygon (MATIC) in NFT sales, accumulating $6.8 million in value according to Cryptoslam. In September, the situation was reversed, with Solana totaling $23.9…
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