Solana, the once touted Ethereum killer has made a stunning comeback with a +35% surge in the past few weeks.
Even though SOL is far behind its giant strides in the 2021 bull run with price levels rocking at $250, the 9th-ranked crypto asset is still up 22% on the weekly index despite muted interest levels.
With the latest price burst since April as per on-chain data platform Santiment, Solana may be on an unstoppable run.
In a July 6 report, the noted market expert explored the reasons behind the unexpected leap.
The crypto market received a much-needed boost following a slew of mid-June ETF applications from leading AUMs that promised to increase exposure to different assets.
While some popular coins, including BTC, ETH, ADA, and XRP, experienced price increases, the impact on SOL was minimal. This element is thus removed.
Nothing noteworthy is occurring at the time in the NFT space as well.
Santiment researchers believe that Solana’s rise in social volume earlier today on Reddit is the main ‘culprit’. And interestingly, the uptick followed shortly after the publication of the report, signifying that the asset is “still standing”
“It did appear to coincide with the mild push in price that occurred directly after this post was made, discussing the fact that the asset is still standing.”
Can Solana Sustain The Momentum?
Although SOL’s current social volume is a far cry from its previous peak levels in 2021 and 2022, an increase in trading volume can undoubtedly provide the price jump a little momentum.
The perfect opportunity to invest would have been when we observed these ultra-short funding rate surges happening in the second week of June, as we can see from Solana’s funding rate on Binance and DyDx.
Without the help of shorts being liquidated, prices could still rise, but the chances are reduced, Santiment observed.
However, there is still some hope. At least one can state that legitimate activity is still occurring, albeit much less frequently than before.
At the time of writing this post, SOL is exchanging hands at $19.61, edged up by 1.53% in the past 24 hours. Its market cap stood at $7.8 billion.