SOL, the native currency for blockchain project Solana, has surged by over 22% in the past 24 hours. Following a tumultuous period for the Solana ecosystem, the resurgence has seen SOL overtake Litecoin and Polkadot in the list of top cryptocurrencies by market capitalization.
Recall that the price of SOL hit a new low in late December following marketwide panic about the project’s future. Backed by former billionaire Sam Bankman-Fried and his venture capital firm Alameda Research, Solana came under intense scrutiny after the latter’s disgraceful demise in recent months.
The market panic revolved around whether Solana could weather the storm of losing one of its biggest backers. Other concerns involved if the token hasn’t been overpriced since Alameda Research still holds a considerable amount of vested SOL tokens.
When SOL hit a price below $8 on December 29th, it fell outside the top 15 cryptocurrencies by market capitalization. However, a reversal in fortune from the bottom has seen SOL claw back its position to right outside the top 10.
Solana hit a new $16.97 high in the build-up to press time, with its market capitalization near $6 billion. This means that the price of SOL has increased by over 100% since hitting the December lows. However, SOL still trails Polygon’s MATIC coin by over $1.5 billion and would need to compensate for the losses to reclaim a place in the top 10.
Crypto Market Back on Recovery Path
Notably, Solana’s recovery coincides with a period of recovery for the broader crypto market. Leading cryptocurrency, Bitcoin (BTC), clawed its way back above $17,000 following the previous week’s close. Similarly, the global crypto market capitalization gained nearly $50 billion in the past 72 hours.
Only time will reveal whether the recent recovery marks the bottom of a challenging period for cryptocurrency investors. The global market cap now sits at $850 billion, a far cry from the $3 trillion highs reached during the November 2021 peak.
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