In 2023, Solana’s SOL token had a successful year, surpassing several other major cryptocurrencies in terms of price appreciation. The native digital asset of the Solana network reached an annual high of nearly $125, up more than 1,100% since the start of the year. While it experienced a slight pullback, it still saw a 900% increase, leaving other major cryptocurrencies behind.
These significant price increases came after a tough couple of years for SOL, with its value dropping from an all-time high of $250 in 2021 to below $10 in 2022. However, the token saw a sharp rally in October, which continued into the rest of the year.
Analysts attribute this impressive performance to multiple factors, including growing confidence in Solana’s fast transactions, low fees, and increasing popularity. The network also saw a rise in the number of active wallets and record-high transactions per second, boosting investor confidence.
Additionally, the positive developments in cryptocurrency regulations, particularly in the US, have played a role in SOL’s gains. This includes the resolution of the XRP & Grayscale lawsuit and the diminishing impact of the FTX collapse on Solana.
The overall bullish sentiment in the crypto market also contributed to SOL’s success, with rising prices of Bitcoin and increased derivatives volumes indicating a growing appetite for risk among investors.
Investment advisors have also expressed renewed interest and optimism in Solana, citing its fast transaction speeds, dominance in daily NFT sales volume, and a growing ecosystem with better user experience. Technological improvements have also been highlighted, with the Solana network benchmarked at 65,000 transactions per second, significantly higher than Bitcoin’s 7 TPS.
Despite these achievements, the SOL token failed to surpass $125 in 2023, while Bitcoin exceeded $40,000. This raises questions about why the token is undervalued, especially when considering the network’s capabilities compared to other established blockchains.
The author, a financial writer and editor, has a strong understanding of asset markets and investing concepts. With over 1,000 publications in major mediums and experience working for financial institutions, he holds various cryptocurrencies, including SOL.