Solana (SOL) is on the rise: What's behind today's price increase

Solana (SOL) is on the rise: What's behind today's price increase

This period has proven to be very successful for the Solana (SOL) cryptocurrency, with its price rising by 5.42% to reach $247. This positive trend comes at a time when Solana is outperforming most of its competitors in the market. A key factor that contributed to this increase is the appointment of David Sacks as an advisor on artificial intelligence and cryptocurrencies in Donald Trump's administration.

David Sacks, a well-known investor and founder of Craft Ventures, has a close relationship with the cryptocurrency Solana. In the past, he himself has confirmed that he is an owner of SOL tokens and has spoken about his investments in the cryptocurrency as early as 2022 on the All-In podcast. This appointment increases interest in Solana, and some analysts even speculate that it could facilitate the approval of a spot ETF for Solana in 2025.

In addition, Solana's gains today coincide with the rise in popularity of memecoins, which are also tied to the platform. Memecoins like Dogwifhat (WIF), Bonk (BONK) and Peanut the Squirrel (PNUT) have seen gains ranging from 4.5%-7.5% over the past 24 hours. Even Gigachad (GIGA), recently added to Coinbase, is up 2.6%. This boom in memecoins has likely increased activity on the Solana network and thus the demand for the SOL token, which serves as a "gas token" for transactions.

According to analysis by Dune Analytics, more than 4.32 million memecoin projects have been created on the Solana blockchain, generating over $383 million in SOL revenue. This surge in memecoin activity contributed to record volumes of trades and transactions on the platform, resulting in a 4.50 million SOL growth in total blockchain value (TVL).

Technically, today's rise in Solana's price reflects support at the lower trend line of the ascending triangle. This type of formation is considered a positive signal as it suggests that the price could continue to rise after a period of consolidation. If the SOL price breaks above the $250 level, it could result in further growth to $300-310.

In conclusion, Solana is currently experiencing a strong upswing, fueled not only by the appointment of David Sacks, but also by the memecoin boom. If the trend holds and key resistances are overcome, we could see more exciting developments for this cryptocurrency in the coming months.

*This is not investment advice.

Coingarage team