Solana Soars: SOL Price Gains 100% in Q1 Despite FTX Fiasco


    • The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.
    • In the first quarter of 2023, Solana SOL’s price has risen 104%, making it the highest gains compared to any cryptocurrency in the top 25.
    • Messari’s analysis of the Solana ecosystem after the FTX collapse showed its staking and decentralization were stable and actually improved its position after the FTX fiasco.

    Solana Overcomes FTX Fiasco

    The cryptocurrency market reacted negatively to Solana’s association with crypto entrepreneur Sam Bankman-Fried and his collapsed ventures, FTX and Alameda Research, resulting in a 95% drop in SOL’s price in 2022. However, so far this year, things have been looking up for SOL as it has seen a 104% increase in price to around $20.60 per SOL. This makes it one of the best performing cryptocurrencies among those ranked in top 25 by market capitalization.

    Best Month Since August 2021

    January was Solana’s best month since August 2021 in terms of price performance as it rallied by about 140%. The rally coincided with Messari’s analysis which showed that despite the FTX fiasco, Solana’s staking and decentralization were stable or even improved afterwards.

    Overreaction To Links With Tainted Boss

    It is likely that traders bought into SOL during January due to it being excessively oversold in December 2022 combined with Messari’s positive report on Solana’s stability post-FTX fiasco leading many investors to believe that there had been an overreaction to its links with Bankman-Fried.

    Continued Network Upgrades & Initiatives

    Solana will continue releasing initiatives such as network upgrades, ecosystem developments, and community efforts throughout 2023, showing hope for further price increases.

    Light At The End Of The Tunnel Heading Into 2023

    Although still down from pre-FTX levels, all signs point towards a recovery for SOL following an otherwise tumultuous year full of challenges. Moving forward into 2023 promises light at the end of tunnel both figuratively and literally with regard to investment potential for those holding onto their coins through thick and thin.