Journalist
Posted:
- SOL started trading at an 18-month high.
- It posted a 20% intraday rally on November 15, following Cathie Wood’s comments.
Solana [SOL] has become a top player in the altcoins market, with its native token SOL now trading at its highest price since May 2022.
At the time of writing, the Layer 1 coin was exchanging hands at $65.52. The last time the alt traded before this high was on May 10, 2022, data from CoinMarketCap showed.
The price of SOL has been rising continuously since October 15. The coin saw a further intraday spike of 20% on November 15, spurred by comments from ARK Invest CEO Cathie Wood in an interview with CNBC.
According to Hout:
“Ether was faster and cheaper than Bitcoin at the time – that’s how we got Ether. Solana is even faster and more cost-effective than Ether.”
2022 was tough for Solana
Touted as an “Ethereum [ETH] killer” due to its transaction speed and scalability, Solana’s performance in 2022 was significantly affected by the series of outages it experienced that year.
The network experienced eight outages between January and September. According to the network developers’ status reports, the outages were mainly caused by congestion, which occurred when the network became overwhelmed by transaction volume.
So far this year, the chain has performed optimally, making only one withdrawal failure on July 20, which lasted about four hours. The cause of the outage was a bug in the network’s software, which the developers immediately fixed.
Another major setback for Solana in 2022 was the unexpected collapse of FTXa cryptocurrency exchange founded by Sam Bankman-Fried, a prominent figure in the Solana ecosystem.
FTX was a strong supporter of Solana, providing liquidity and driving adoption of the network.
When the stock market crashed in November 2022, it had a domino effect on SOL’s value and the way the overall crypto ecosystem perceived the chain. Between November 10 and December 31, 2022, SOL’s value plummeted 41%.
Source: CoinMarketCap
This statistic is one to pay attention to
An on-chain assessment of SOL’s performance conducted by AMBCrypto revealed a steady increase in the Sharpe ratio since September.
This measure is used to compare the returns that would be generated by investing in an asset, with the risks associated with it. When an asset’s Sharpe ratio increases, it generates a higher return relative to the amount of risk it takes.
Is your portfolio green? look at the SOL profit calculator
Investors often take this as a bullish sign, causing them to accumulate more.
At the time of writing, SOL’s Sharpe ratio was 9.11, up 262% since September 4, according to data from Messari. At the time of writing, SOL’s Sharpe ratio was at its highest level since September 2021.
Source: Messari
