SOL Records Uptrend, Gains over 40% in Past Week.
Solana, after losing more than 80% of its value in 2022 and being pushed out of the top 10 cryptocurrencies list, is seeing a rally. The altcoin has gained 41.63% in the past seven days. At the time of writing this article, SOL was trading at $23.46.
SOL’s price surge is intertwined with Solana meme cryptocurrency BONK which burned 500 billion coins of its supply today. The new token is up over 2000% since its all-time low five days ago. BONK maintained its hype in the market by announcing that it has burned five billion coins. The dog-themed token is pushing away other coins. It has seen double-digit gains almost every day in the last five days.
However, BONK is not risk-free. The top 20 holders of BONK, as per Dune Dashboard, account for about 50% of the total coins’ supply. This should raise concerns among retail investors. But BONK is catching my eye. TRON’s Justin Sun said Huobi is going to list the new coin. Bybit will also list it. As such, BONK is getting legitimacy and exposure.
Analysts have also attributed Solana’s resurgence to the growing demand for decentralized finance (DeFi) projects. Developers can create decentralized applications on the Solana blockchain at low costs. Moreover, Solana boasts speed in the execution of transactions. Furthermore, it is highly regarded for scalability, speed, and affordability.