Solana (SOL) Soars 10% In 24 Hours After Dropping Below the $10 Mark

Most crypto analysts believe that three factors contributed the most to the drop in the value of Solana (SOL) throughout 2022. The first reason among them is the prolonged crypto winter that started in early 2022. Solana (SOL) is among the countless cryptocurrencies that were victims of the crashing market. The second reason revolves around the sky-high interest rates set by the FED.  Not only did these hikes affect the crypto market, but also sent shockwaves throughout the monetary ecosystem. The last reason that causes a decline in value is the rise of competition from new and promising crypto-based projects.

Just last week, the market cap of Solana (SOL) dropped below LTC, SHIB, and TRX as it lost more than 60% of its value. At that time, the coin dropped under the $10 mark and traded around $9.91. However, Solana ended up suffering the most as a result of a direct investment relationship with SBF. FTX inevitably ended up filing a Chapter 11 Bankruptcy, and all firms with connections had to suffer.

Solana (SOL) can simply be defined as an open-source blockchain that is crafted to fully support the development of dApps. The protocol makes active use of proof of stake and proof of history to achieve scalability and improve transaction speeds. The coin is responsible for offering the fastest transaction procession time. Similarly, this can be defined as a feature that many have actually failed to replicate and beat.

Solana (SOL) soars 14% in 24 hours after dropping below the $10 mark

Solana (SOL) on the Rise

Despite the fact that Solana (SOL) took a dive at the $10 mark, and even traded below that, things inevitably took a drastic turn. At the time of writing, Solana (SOL) is up by a respectable 9.90% over the previous 24 hours and is trading for $10.98. At the same time, the coin also has a total market capitalization of approximately $4 billion as well. Most believe that the surge in value can be linked to investors regaining confidence regarding investing in crypto. At the same time, some believe that the conditions in the crypto market have started to ease out.

Solana (SOL) might eventually result in being profitable for a number of investors. If it manages to gain value over the next few days, the coin might make a comeback. However, SOL is expected to be subject to a series of further drops till it manages to rise back up again.