According to Cointelegraph: Solana's native token, SOL, experienced a 19.5% increase between March 5 and March 7, pushing its value to a notable $150. This sudden uptick comes in the wake of asset manager Pantera Capital's pledge to acquire $250 million worth of SOL tokens from the bankrupt FTX estate. This has sparked a flurry of speculation regarding SOL's sustainability and the possibility of surpassing $200.
The surge in SOL's value can be traced back to a range of factors, including the current frenzy surrounding Solana SPL memecoins, which creates an encouraging environment for investors to speculate on newly launched tokens within the Solana network. This, in turn, leads to increased liquidity provided by project developers.
Notably, other SPL tokens with associated applications, such as Jupiter (JUP) and Raydium (RAY), also experienced substantial growth during the same period. The added anticipation surrounding potential airdrops, such as Wormhole, Kamino, Parcl, and MarginFi, sustains a steady demand for SOL tokens.
It's also worth observing the broader Solana network activity as the key determinant of SOL's bullish momentum. The Solana network's smart contract holdings, measured by total value locked (TVL), hit a 16-month peak on March 6. During the same timeframe, Solana DApps volume witnessed a huge 311% surge, outpacing competitors such as Ethereum.
However, SOL's quest to regain the $200 mark depends on the continued demand growth for the Solana network within this competitive industry. At present, Solana's robust performance, heightened by the memecoin hype, liquid staking, and airdrops, forms a solid foundation for the ecosystem's expansion.
