- SOL has surged 70% in the past month to $40, despite being 85% below its all-time high of $260 in November 2021
- Recent gains seem driven by broader momentum in crypto markets, with SOL benefiting as sentiment improves
- SOL has overtaken Polygon for daily DEX volume on its network, signaling increased utility and activity
Two years ago today, on November 6th 2021, the price of Solana‘s native SOL token hit an all-time high of nearly $260. Since then, SOL has seen a dramatic decline in value, bottoming out around $30 earlier this year. However, in recent weeks the token has staged an impressive comeback, rising over 70% in the last month to current levels of around $40.
The November 2021 Peak
SOL’s previous peak price coincided with a broader crypto bull market in late 2021, which saw Bitcoin explode above $69,000 for the first time. Solana rode the wave of hype and speculation in the crypto space at the time to reach its record valuation.
Recent Gains Driven By Broader Momentum
The recent gains for SOL seem to be driven partly by a return of momentum across crypto markets. Prices often move in sync across major crypto assets like Bitcoin and Ethereum. As the overall market sentiment has improved, SOL has benefited.
Surpassing Polygon In DEX Volume
Recent developments for Solana include surpassing Polygon in daily DEX trading volume on its network. Solana registered over $240 million in daily volume, while Polygon managed $137 million. High on-chain activity is a positive sign for the long-term utility of the network.
Institutional Interest Also Returns
Solana has also attracted renewed interest from institutional crypto investors this year. SOL has seen $74 million in inflows in 2022 so far, ranking it second only to Bitcoin in terms of institutional demand. The ‘smart money’ often leads market cycles.
While SOL remains far below its all-time high for now, the recent resurgence provides hope that Solana may be finding its footing again after a brutal crypto bear market. Continued adoption and development on Solana could help drive the next leg up for SOL.