Solana (SOL) has achieved remarkable success, reaching new yearly highs with a 17% gain just a day after ARK Invest CEO Cathie Wood praised its efficiency and cost-effectiveness in a CNBC interview. Wood emphasized Solana&'s role as a crucial infrastructure player in the blockchain ecosystem, lauding its superior speed and cost-effectiveness when compared to Ethereum. While the broader cryptocurrency market is on an uptrend, Solana has outperformed other major cryptocurrencies, gaining 197% in the last month, while Bitcoin and Ethereum have seen more modest gains. Wood also cautioned against becoming too focused on short-term price movements, addressing the market&'s anticipation of Bitcoin ETFs.
In related news, SOL is facing a potential threat of liquidation as FTX Derivatives Exchange initiates a notable on-chain transfer to Kraken. The move, part of FTX&'s ongoing liquidation strategy, has caused a 5% drop in Solana&'s price, though trading volume remains robust. FTX&'s actions come in the wake of its bankruptcy and efforts to repay creditors by selling cryptocurrency holdings. The impact on Solana, which initially faced challenges due to its exposure to FTX, has evolved as the cryptocurrency has retested pre-bankruptcy price levels. However, FTX&'s recent transfer to Kraken adds uncertainty to the market, raising questions about Solana&'s resilience in the face of potential liquidation pressures.
Solana Surges to New Yearly Highs Following Praise from ARK Invest CEO Cathie Wood
In a dramatic turn of events, SOL has soared to new yearly highs, recording a staggering 17% gain in a single day. This remarkable surge comes on the heels of glowing remarks from Cathie Wood, the CEO of ARK Invest, who lauded the Solana network for its remarkable efficiency and cost-effectiveness.
Wood&'s endorsement of Solana came during a Nov. 15 interview with CNBC, where she hailed the network as a pivotal infrastructure player within the broader blockchain ecosystem. She commended Solana for its outstanding performance in recent market conditions, emphasizing its exceptional speed and cost-effectiveness when compared to Ethereum.
In her interview, Wood drew parallels between the evolution of Ethereum and Solana, both of which she considered to be vital components of the blockchain infrastructure, capable of enabling a broader range of real-world applications than Bitcoin. According to Wood, "Ether was faster and cheaper than Bitcoin in the day - that&'s how we got Ether. Solana is even faster and more cost-effective than Ether."
Wood&'s statements have further cemented Solana&'s reputation as a blockchain powerhouse and underscored the network&'s ability to outshine its competitors in terms of speed and cost-efficiency.
As Solana continues to reach new heights, its performance has significantly outpaced that of other major cryptocurrencies in the past month. Over the last 30 days, Solana has surged by an astonishing 197%, while Bitcoin and Ethereum have seen more modest gains of 32% and 28%, respectively, during the same period.
Wood also took the opportunity to address the ongoing market anticipation surrounding a multitude of pending spot Bitcoin ETF products. She emphasized the importance of keeping a long-term perspective on the significance of Bitcoin as a "money revolution," urging investors not to become overly fixated on short-term price fluctuations.
In her assessment, Wood acknowledged the possibility of a "sell on the news" scenario, where investors&' anticipation of ETF approval might outpace the actual market demand following approval. This could potentially lead to a swift selloff in the days immediately following the ETF&'s introduction.
As the cryptocurrency market continues its upward trajectory and Solana&'s star continues to rise, it is clear that the blockchain landscape is evolving rapidly, with investors eagerly awaiting the next developments in this ever-changing industry. Solana&'s recent success and Wood&'s endorsement highlight the network&'s growing prominence within the blockchain ecosystem, positioning it as a formidable competitor to Ethereum and a promising contender for the future of decentralized applications.
Solana Faces Potential Liquidation Threat as FTX Initiates On-Chain Transfer
SOL finds itself at the center of attention once again as the bankrupt FTX Derivatives Exchange triggers concerns of potential liquidation. Recent data from cryptocurrency analytics provider Lookonchain has revealed that FTX has initiated a significant on-chain transfer, moving a total of 250,000 SOL, valued at approximately $13.6 million, to the Kraken exchange.
FTX&'s actions are consistent with its recent strategy, as the exchange has been aggressively pursuing liquidation efforts in recent months. According to Lookonchain&'s data, the public address associated with FTX now holds a mere 3,408 SOL, valued at $185,000.
The most plausible explanation for this large transfer of Solana to Kraken is liquidation, and this development has not gone unnoticed by the cryptocurrency market. In response to the news, the price of Solana has experienced a 5% decline, erasing some of the gains it had accumulated over the past week. As of the latest data, Solana is trading at $55.34 on spot exchanges.
Despite the noticeable drop in price, Solana has managed to maintain an unexpected surge in trading volume, which has seen a remarkable increase of 21.35% to reach $2,974,483,716. This surge in trading volume suggests that a positive sentiment still prevails in the market, even in the face of potential SOL liquidations.
It is worth noting that the collapse of the FTX Derivatives Exchange had a significant impact on Solana when it initially occurred. This was largely due to the exposure that the cryptocurrency project had within the exchange. As part of its efforts to repay creditors, FTX was granted permission by the bankruptcy court to sell its cryptocurrency holdings, and it has since acted on that authorization.
The sell-off by FTX affected various altcoins, including Render (RNDR), Polygon (MATIC), and Chainlink (LINK), among others. However, the impact on Solana was particularly pronounced. Despite this initial setback, the situation has evolved over time. Solana has managed to retest its pre-FTX bankruptcy price levels, thanks to a remarkable performance in both October and early November.
This recent transfer to Kraken by FTX has added a new layer of uncertainty to the Solana market. Traders and investors will be closely monitoring the situation to gauge the potential implications on Solana&'s price and overall market sentiment. As the cryptocurrency landscape continues to evolve, Solana&'s ability to weather such challenges will be closely scrutinized, and its resilience will undoubtedly be put to the test once again in the coming days.
At press time, SOL was changing hands at $65.11, according to the cryptocurrency price tracking website CoinStats. This was after the Ethereum-killer posted an impressive 15.28% gain over the past 24 hours, which also pushed its weekly performance to +47.61%.
Price chart for SOL (Source: CoinStats)
The altcoin also gained more than 9% against Bitcoin (BTC). Subsequently, 1 SOL was estimated to be worth 0.00174383 BTC.