The fifth-largest cryptocurrency is experiencing a surge in value driven by several factors, including active meme coin and DeFi trading, an upcoming network upgrade, and growing interest in restaking within the ecosystem.
Solana’s SOL reached its highest price in over a month on Friday, surpassing most major cryptocurrencies. According to Syncracy Capital co-founder, the token remains one of the most promising trades in this cycle and could potentially reach $200 by the end of May.
With SOL hitting $170 before a slight pullback to $166, it marks a significant increase of nearly 7% over the past 24 hours and more than 40% from its recent low in early May, while Bitcoin dropped to $56,000. On a weekly basis, Solana’s 17% gain stands out among the CoinDesk 20 Index (CD20), second only to Chainlink’s performance following news of a fund tokenization pilot partnership.
Syncracy Capital’s co-founder, Daniel Choung, expressed confidence in SOL’s potential to surpass the $200 mark by the end of the month and potentially reach new record highs. The cryptocurrency previously reached an all-time high of $260 in November 2021 during the previous bull cycle.
Solana’s recent surge is attributed to various factors, including active trading of meme coins, robust stablecoin volumes, and DeFi activity. Additionally, upcoming network upgrades, particularly the introduction of Firedancer, a secondary chain client developed by Jump Crypto, are expected to enhance the network’s performance.
Moreover, there is a growing interest in restaking, also known as shared cryptoeconomic security, within the Solana ecosystem, indicating a positive outlook for the cryptocurrency’s future growth.
