Why does the price of Solana skyrocket in January?

Solana favorite for institutional investors

Solana’s last few weeks have been very volatile. On December 25, at Christmas, the ecosystem launched the BONK token, a meme coin that shows the avatar of a dog and is inspired by Shiba Inu. “It is the first Solana dog coin for the people, by the people,” read a message from the community.

Due to this creation, the price of SOL has skyrocketed by more than 35% in the last week alone and went back above 13 USD (listing at 13.30 USD).

50% of the BONK supply was sent to the community of Solana to offset the losses caused by the collapse of FTX and Alameda. “ The Bonk community was tired of Alameda and wanted to make a fun meme coin where everyone had a fair chance,” the document said.

According to data from CoinMarketCap, BONK soared 42.9% yesterday, while today it plunged more than 36% to $0.000002026, with a market capitalization of $170 million.

What happened to Solana?

As revealed on Market Times, Sam Bankman-Fried’s endorsement of Solana and revelations that Alameda had a significant portion of SOL on its balance sheet hurt Solana’s price, which fell as low as $8.30 at the end of December. . At the time, SOL’s annual losses exceeded 96%.

Another reason that hurt the price is that two of Solana’s largest NFT projects, DeGods and y00ts, migrated to Ethereum and Polygon, respectively.

Encouragingly, Ethereum co-founder Vitalik Buterin expressed his support for Solana , noting that ” the chain has a bright future ” after the recent sell-off wiped out ” the horrible opportunistic money people .”

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