Solana's Token SOARS 17% with Boost from Coinbase Listing and Anticipation of Future Airdrops
Summary:
The Solana (SOL) token experienced a significant surge of 17% within 24 hours, achieving its highest value since May 2022. The gain was triggered by Coinbase CEO, Brian Armstrong's announcement of integrating the Solana network, fuelling a 236% rise in Solana's Meme token, Bonk. The listing of another Solana token, Jito (JTO), on Coinbase also boosted SOL's value, with JTO's price doubling in a day. SOL's rise is further supported by anticipation of potential airdrops in the Solana ecosystem, its increasing DeFi and NFT activity, and SPL token listings on major exchanges.
The home-grown token of Solana (SOL) experienced a 17% rise between December 7 and 8, hitting its highest price since May 2022. This turnaround in SOL's fortunes began on December 1st, when Brian Armstrong, the CEO of Coinbase, unveiled a plan to incorporate the Solana Network, including SOL. This announcement stirred interest in Bonk (BONK), a meme token on the Solana network, which witnessed a whopping 236% increase between December 1 and 8. The token is listed on exchanges such as Bybit, KuCoin, and Orca.
Recently, on December 6, Coinbase announced the listing of Jito (JTO), another Solana-based token. The listing caused an immediate success, leading JTO price to double between December 7 and 8. With a current supply of 115 million, Jito's market capitalization stands at $422 million.
Jito, a liquid staking protocol on the Solana network, distributed 80 million tokens to its early users, contributors, and validators, with nearly 9,900 wallets staking SOL using Jito before the snapshot date, leading to an impressive per-participant distribution of 4,941 JTO tokens.
Jito is a decentralized finance (DeFi) application that enables users to stake their SOL and in return get a JitoSOL token, which offers added flexibility and yields, a practice common in Ethereum's network through the Lido platform. Binance has the leading JTO market, with bids totaling $606,000 according to Coingecko's order book depth.
Details were recently shared by analyst Patrick Scott highlighting potential Solana ecosystem airdrops like MarginFi, Tensor, Jupiter, Kamino, and Parcel, which could potentially yield similar gains enhancing the demand for SOL tokens.
Interestingly, SOL's price surge above $72 came just after Solana's announcement of its Saga smartphone sales being below target, with only 2,500 units being sold, less than 10% of their target. Solana's co-founder, Anatoly Yakovenko, hinted that the product is under review as progressive web apps evolve, helping bypass Android and iOS stores' fees.
Regardless of the subpar smartphone sales and the general lull in DeFi, Solana's upswing has been fueled by the improvement in Solana network's activity and deposits, evidenced by the 12.65 million total value locked (TVL) in DeFiLlama, a 36% increase since November 15, which recorded the lowest TVL in over two years.
Additionally, trading activity on Solana's DEXs witnessed a growth of 65.7% in the last week. It's worth noting that Solana's adversaries, Ethereum and BSC Chain, also enjoyed significant growth of 21.6% and 31.5% respectively, during the same period.
The NFT activity on Solana also saw a climb, reaching an impressive $15.2 million in sales with 16,489 buyers in the last 24 hours. The NFT market on Solana was dominated by the Tensorians collection, totaling $4.6 million in sales, followed by Mad Lads with $1.7 million and Quekz with $832,000.
In summary, SOL's recent surge above $72 is attributable to SPL token listings on mainstream exchanges, increased DeFi and NFT activity, and the anticipation of more airdrops following Jito's success.
Published At
12/9/2023 12:18:40 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.