Solana (SOL) breaks another personal ATH record: What’s next?

The valuation of Solana experienced a significant breakthrough, reaching a new zenith late on a Friday, according to CoinGecko's figures, which illustrated its market capitalization surpassing $82 billion. It later adjusted to approximately $80.5 billion, yet it still exceeded the peak figures of 2021.

However, Solana's (SOL) trading price hasn't surpassed its historical high of $259.96 from November 2021. The increase in the number of SOL tokens currently in circulation, as opposed to 2021, has elevated its total market valuation to record levels.

Presently, SOL is priced at $183 on Gate.io, showing an increase of close to 9% within a day and 21% over the previous week. Among the leading 20 cryptocurrencies, SOL has outshined all in terms of 24-hour performance. Moreover, this recent surge marks its highest value since December 2021.

The resurgence of interest in Solana came as a surprise last year. Known for its speed and cost-effectiveness as an alternative to Ethereum, Solana had been a top pick for the now-defunct cryptocurrency company, FTX. SOL's value saw a significant decline by the end of 2022 due to its association with FTX.

Despite the downfall of FTX and the legal troubles of its former CEO Sam Bankman-Fried, many expected Solana's value and network to diminish. Contrary to these expectations, Solana witnessed a revival in November for several reasons. Developers appreciated its efficiency and affordability, major corporations like Shopify and Visa expressed interest in utilizing its blockchain, and its low transaction fees attracted traders of meme cryptocurrencies.

Currently positioned as the fifth-largest digital asset by market capitalisation, SOL and its network have seen a surge in interest, particularly with the rise in cryptocurrency values and the popularity of new meme tokens such as BONK and Dogwifhat.

Speaking of BONK

Over the past month, BONK's value has surged by an impressive 821%, according to CoinGecko data, hitting new record highs and surpassing a market capitalization of $1 billion. Although each token's current value stands at a modest $0.00002006, owning millions or billions of these tokens can translate into significant wealth.

This leading meme token of the Solana ecosystem emerged during a challenging period, coinciding with SOL's decline to approximately $8, a stark contrast from its nearly $260 high in November 2021. The downturn in the crypto market was profound at the end of last year.

However, BONK meme coin injected a much-needed positive energy into the Solana community, benefiting a wide array of participants within the Solana network from the airdrop that took place shortly after the token’s launch. Whether it was DeFi traders, NFT enthusiasts, or artists utilizing the blockchain for minting, BONK was distributed extensively. Furthermore, developers associated with LamportDAO received roughly 5% of the total supply of tokens, highlighting the broad reach and impact of this meme coin's introduction. This on the other hand plays a two sided game.

Airdrops may of course be great to get the community going but give a little too much away, and there is no way that your token will ever find its price ground. BONK devs seem to have done it right as BONK showed an outstanding performance in terms of its growing valuation. However, thre might still be a few doggo whales lurking in the shadows. 

The role of the SOL phone 

Launch of the Solana phone emerged as a healthy stride for the Solana ecosystem, igniting a wave of FOMO across its community. Crafted with the blockchain enthusiast in mind, this device was more than just a smartphone; it was a gateway to the vast universe of Solana, unlocking effortless navigation through decentralized apps, swift crypto transactions, and vibrant NFT marketplaces. This smartphone did not just underline Solana's dedication to technological advancement; it magnetically pulled in a fresh crowd of users and developers, breathing new life into the network. 

Why? Because the Solana phone granted its users access to airdrops that made the price of the phone obsolete, since people were getting much more in tokens, than the actual purchase price of the phone. As the Solana phone carved its niche, it symbolised the network's bold leap into the future, promising a seamless blend of blockchain functionality with our daily digital experiences, and spotlighting Solana's ambition to weave itself into the fabric of next-gen tech.

Final thoughts

Solana might not be everyone’s favourite. Some don’t even take it seriously. But what we have to give to it is that despite all issues with the network, it is still here, breaking its own records. Furthermore, no other blockchain does smartphones, and not that it is an achievement but at least it showcases a different take on the go to market strategy. And being different is never a bad thing, prompting us to wonder what else will Solana bring to us this year. 

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