Key Points:
- SOL’s 80% Gain: Solana’s token, SOL, experiences remarkable 80% gains following the Firedancer testnet release.
- Ethereum Lagging: In contrast, Ethereum (ETH) lags behind with under 11% gains during the same period.
- Firedancer’s Promise: Firedancer, Solana’s scaling solution, aims to address past network outages and is set for a mainnet launch in 2024.
Solana’s recent surge in value, marking an impressive 80% increase in just one month, is closely tied to the long-awaited launch of its scaling solution, Firedancer, on the testnet. This solution is expected to address the frequent outages that have plagued the Solana blockchain in the past.
As of November 2, Solana’s token, SOL, reached a price of over $41, a level not seen since August of the previous year, as reported by Cointelegraph Markets Pro data. This surge is in stark contrast to its rival Ethereum (ETH), which experienced more modest gains of under 11% over the same one-month period.
Investment products associated with SOL have also witnessed significant inflows in recent weeks, according to CoinShares. However, it’s important to note that SOL is still down approximately 84% from its all-time high of nearly $260, which was recorded on November 6, 2021.
The testnet launch of Firedancer was officially announced at Solana’s Breakpoint conference on October 31. This solution, developed by Web3 development firm Jump Crypto over the past year, serves as a new validator client for the Solana network. It aims to enhance the network’s speed, reliability, and validator diversity. The mainnet release of Firedancer is anticipated in the first half of 2024.
Firedancer has been hailed as the long-term remedy to Solana’s historical network outage issues, which Solana Labs founder and CEO Anatoly Yakovenko has referred to as a “curse.” In 2022, Solana encountered 14 partial or major outages, but the situation improved in 2023 with only one major outage reported in February.
Nonetheless, there are concerns regarding potential selling pressure on SOL. Approximately $56 million worth of the cryptocurrency tied to FTX was unstaked and transferred to an unknown wallet. An additional $32 million worth of SOL associated with FTX and Alameda Research also moved to a wallet suspected to belong to Galaxy Digital, the designated liquidator for these firms.
In a broader context, other altcoins have experienced significant price increases over the past month, coinciding with a positive shift in crypto market sentiment. On November 2, the Crypto Fear and Greed Index rose by six points from the previous day, reaching a level of 72 out of 100, indicating a sentiment of “greed.”
Among the notable altcoins, Chainlink recorded a remarkable gain of over 54% in the last 30 days. Furthermore, Bitcoin, Avalanche, and Near Protocol also posted substantial 30-day gains of 30%, 32%, and 37.5%, respectively.
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