Why This 'Ethereum Killer' Rallied 80% In Just A Month - Emeren Group (NYSE:SOL)

The value of Solana SOL/USD has soared by 80% within the past 30 days, spurred by the testnet launch of its anticipated scaling solution, Firedancer.

What Happened: Solana’s market value skyrocketed by nearly 81% in the last month, with a 30% jump happening just within the past week. This growth is closely linked with the testnet launch of Firedancer, which is seen as a long-term solution to past network interruptions experienced by Solana.

On November 2, SOL’s value topped at over $41, a peak not witnessed since August of the preceding year. However, it still lags, being down approximately 84% from its record high of nearly $260 in November 2021.

Previously tagged the “Ethereum Killer”, Solana has outperformed its competitor Ethereum ETH/USD. While SOL registered substantial gains, ETH increased by less than 11% over the past month.

Firedancer, a new validator client intended to enhance speed, reliability, and validator diversity, was unveiled at Solana’s Breakpoint conference on October 31. Its mainnet launch is slated for the first half of 2024.

However, there are lingering concerns over potential selling pressure following the unstacking and transfer of $56 million worth of SOL to an unknown wallet. Furthermore, an additional $32 million of SOL associated with FTX and Alameda Research was moved to a wallet believed to belong to Galaxy Digital, the firms’ chosen liquidator.

Why It Matters: Solana’s surge comes despite concerns about sell pressure lingering after FTX unstaked $67 million tokens.

The movement of significant amounts of SOL to other wallets had raised fears of a possible dump. However, the launch of the Firedancer testnet seems to have helped retain investor confidence, leading to the recent surge.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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