Solana Surges to New 2023 Highs — What’s Behind the SOL Rally? 

Nov 11, 2023


Solana’s native token, SOL, recently saw a significant 22% surge on Nov. 10, surpassing the $54 milestone for the first time since May 2022. 

A significant surge took place while FTX's bankruptcy estate continued to sell SOL tokens. The Delaware Bankruptcy Court approved the sale of the failed exchange's assets, including 55.75 million SOL tokens, in September 2023. 

Investor optimism for SOL's price surge is fueled by the vesting or locking of tokens from the bankruptcy proceedings. 

As part of the FTX liquidation plan, a weekly sale limit of $100 million has been imposed. Initially, there were concerns about asset liquidation, but now investors are hopeful due to the limited impact of the sales. 

Longs (buyers) are indicating a positive funding rate, suggesting increased demand for leverage, whereas shorts (sellers) are requiring additional leverage, resulting in a negative funding rate. 

SOL's current futures funding rate indicates a 0.5% weekly cost for leverage longs, which is considered reasonable in light of the ongoing bullish momentum. 

Solana's DApps deposits have surged by 10% in the past three days. Although the current level of 11.1 million SOL remains below the pre-FTX exchange bankruptcy peak of 30 million SOL. 

Solana has recently emerged as the fourth-largest blockchain in decentralized finance (DeFi) TVL. Notably, it has witnessed a 28% increase in the number of active addresses. 

There has been a surge in activity, while competitors are facing declines. Market leader Ethereum has reportedly experienced a 22% drop in DeFi active users, according to DappRadar. 

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