Solana's SOL Soars 20% Amid Bullish Investor Sentiment and FTX Optimism

The valuation of SOL tokens has surged past the $63 mark, reaching a level reminiscent of May 2022. This upward momentum coincided with a substantial surge in daily trading volumes, exceeding the $3.5 billion mark. This surge reflects a noteworthy increase of over 70% when compared to the average levels of $2 billion observed at the outset of November.

In the context of a market predominantly adhering to a defined range, Solana's SOL displayed a notable surge, registering an almost 20% increase within a 24-hour timeframe. This propelled SOL to the forefront among major cryptocurrencies.

The token's climb to $63 and the significant spike in trading volumes transpired without an immediate catalyst on Wednesday. Nevertheless, optimism surrounding Solana has been steadily on the rise, particularly following the conclusion of Sam Bankman-Fried's trial. Bankman-Fried, a prominent supporter of Solana, had amassed a portfolio exceeding $1 billion worth of SOL tokens through his entities, Alameda Research and FTX.

November 2022 witnessed a substantial decline in SOL prices subsequent to a Bitsday report highlighting potential vulnerabilities in Bankman-Fried's realm. Despite this, sentiments have rebounded since the once-prominent figure in the cryptocurrency space faced incarceration and was found guilty on seven charges. Simultaneously, wallets linked to the insolvent crypto exchange FTX, overseen by the debtors group, reportedly shifted around $102 million in SOL tokens to various crypto exchanges in recent months. While such movements may imply a potential sale on the open market, SOL prices have continued their upward trajectory.

Speculation has emerged among market observers, suggesting that the FTX estate may exhaust its SOL holdings soon. Insights from the on-chain analytics tool SpotOnChain provide backing for this speculation.

#FTX

FTX has sold 6,986,554 $SOL in the past few weeks, for ~$280.2M $USD.

They are completely OUT of unlocked $SOL.

The only $SOL they have exposure to is locked up, most until 2027-2028, just in time to sell the bottom of the next bear market.#SOLANA can commence UP ONLY. pic.twitter.com/Qu2z843oxS

— Curb◎ (@CryptoCurb) November 14, 2023

Data indicates a notable surge in institutional investments in SOL tokens over the preceding weeks. Notably, the Grayscale Solana Trust (GSOL) witnessed a premium of nearly 900% compared to the spot SOL in each share last week, signaling significant demand for the token among regulated funds.

In a recent interview with CNBC, Cathie Wood, the CEO of ARK Invest, expressed the viewpoint that Solana could potentially be a more favorable choice than Ethereum, the world's most widely used blockchain, in terms of technical capabilities. Wood underscored Solana's superior speed and cost-effectiveness compared to Ethereum, contending that it even outshone Bitcoin in these aspects.

"Ether was faster and cheaper than bitcoin," ARK Invest CEO Cathie Wood said, discussing cryptocurrency with @SquawkCNBC. "Solana is even faster and cost-effective than Ether." https://t.co/ELYLeHJfHJ pic.twitter.com/JhBHFPAgee

— CNBC (@CNBC) November 14, 2023

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