Solana Price Soars 45% as DeFi Projects Flourish

• Solana price prediction has skyrocketed 45% to $23.8 due to increasing demand for decentralized finance (DeFi) projects and the growing popularity of the Solana blockchain network.
• On-chain analytics firm Santiment speculates that a “short squeeze” may have contributed to Solana’s meteoric price increase.
• Despite the fact that an estimated 50 million Solana coins are stuck in cryptocurrency exchanges FTX’s Chapter 11 proceedings, Citi Research reported Thursday that activity on the Solana blockchain is still high.

The price of Solana (SOL) has been on an uptrend recently, surging 45% to $23.8 in the last 24 hours. This surge in the price of Solana can be attributed to the increasing demand for decentralized finance (DeFi) projects and the growing popularity of the Solana blockchain network.

The Solana blockchain provides a high-speed, low-cost platform for developers to build decentralized applications (dApps). With its scalability, speed, and affordability, Solana is an attractive option for DeFi projects that need to process large amounts of transactions quickly and at a low cost. The blockchain’s recent surge in popularity has been reflected in its price, with many investors now looking to Solana as an attractive investment opportunity.

On-chain analytics firm Santiment speculates that a “short squeeze” may have contributed to Solana’s meteoric price increase. A “short squeeze”, in layman’s terms, is a sudden surge in the price of an asset due mostly to heavy short selling. According to the on-chain analytics firm, traders on Binance have consistently shown a bearish bias toward Solana since the beginning of this month. The article noted that as the price of SOL bottomed out on December 30th, even greater ratios of SOL shorts began to open. Since its low point, the price of SOL has risen by 170%.

Despite the fact that an estimated 50 million Solana coins are stuck in cryptocurrency exchanges FTX’s Chapter 11 proceedings, Citi Research reported Thursday that activity on the Solana blockchain is still high. According to the firm, the blockchain has witnessed a significant increase in the number of transactions and the amount of daily fees collected from developers. Citi Research further noted that the blockchain’s transaction fees have been increasing steadily since January 3rd and the number of active wallets has also seen a significant uptick in the past week.

All in all, Solana’s meteoric price increase is indicative of the growing interest in the blockchain and the DeFi projects it supports. With activity on the blockchain still high despite the significant amount of coins stuck in cryptocurrency exchanges, Solana could be a good investment option for investors looking to capitalize on the growing DeFi trend.