The price of Solana (SOL) has surged by 4.6% in the last week, pushing past the $20 mark. Furthermore, the number of unique active users has increased by a whopping 146.58% from April 1 to May 1. According to Dune analytics, on May 1, the number of unique active users for SOL stood at 3.6 million. An estimate made by a member of Dune Analytics illustrated that the total number of unique active Solana users has reached 39.75 million.
.@solana has seen a massive spike in active users this month.
— Tom Dunleavy (@dunleavy89) May 28, 2023
Even if you are an Eth maxi hard to not have a small allocation here with so users, devs and call options not priced in (ie mobile, neon, things eth cant do (ie order book, xnfts)) pic.twitter.com/DFSOjOP6iu
One user asked what was driving the increased number of users. Messari analyst Tom Dunleavy, was skeptical if it was because of SOL’s NFTs (non-fungible tokens).
Good question, need to find a good chart on gas usage. Still thinks its NFTs?
— Tom Dunleavy (@dunleavy89) May 28, 2023
However, several factors could be at play, pushing Solana’s (SOL) performance. Firstly, there seems to be a larger crypto market rally. The global crypto market cap increased by 2.6% in the last 24 hours, reaching $1.21 trillion. This may have something to do with the U.S. debt ceiling agreement. Investors may be feeling confident about putting their money in risky assets, such as crypto.
According to Twitter user “MartyParty,” $1.25 billion worth of Solana (SOL) was bought on Huobi today. MartyParty mentioned that it could be because Chinese citizens will be able to buy crypto from June 1 onwards. Many are speculating it could be the beginning of another bull run.
$1.25 billion of Solana bought on @HuobiGlobal today.
— MartyParty (@martypartymusic) May 28, 2023
China is aping into @solana
Remember June 1 Chinese citizens can buy crypto. The exchanges are stocking up. Welcome to the bull run. pic.twitter.com/GgGuJ0F0v3
Can Solana rise higher?
SOL was one of the worst affected crypto projects by the FTX collapse of 2022. However, looking at the growth the project has witnessed since November, it seems that the asset’s woes from the FTX debacle are coming to an end. Just before the FTX collapse, SOL was trading at $36.72. When disaster struck, SOL plunged to a low of $9.77. Since then, the asset has gained 112.18%.
Although SOL has a long way to go before catching up to pre-FTX crash levels, the project’s growth is commendable. With China opening up to crypto once again, it is possible that we may see another surge soon. SOL could potentially go beyond pre-FTX levels, reaching new highs. At press time, Solana (SOL) was trading at $20.73, up by 0.9% in the last 24 hours.