In the wake of recent fluctuations, Solana (SOL) has demonstrated resilience by bouncing back above the $100 mark, indicating a potential bottom formation for the cryptocurrency. Despite temporary setbacks from network outages, Solana’s recovery has been bolstered by a surge in Social Dominance, as reported by on-chain analytics firm Santiment.
Solana’s price resilience
Solana, a prominent cryptocurrency known for its high-performance blockchain, experienced a period of uncertainty following a network outage. This outage, lasting nearly five hours, prompted concerns among traders and investors.
However, SOL swiftly recovered, defying market expectations and reaffirming its strength in adversity.
Social dominance surge
Santiment’s data reveals a notable spike in Solana’s Social Dominance, a metric derived from Social Volume, which measures the extent of discussions surrounding cryptocurrency across various social media platforms.
Unlike simply tallying mentions, Social Volume provides a nuanced understanding by considering the total number of posts or threads related to Solana.
The surge in Social Dominance indicates a significant increase in Solana’s share of discussions compared to other top 100 cryptocurrencies. This uptick in social engagement can be attributed to the recent network outage, which prompted traders to voice their concerns and opinions on social media platforms.
Market perception and historical trends
While the network outage initially triggered fear, Solana’s price trajectory defied market sentiment, echoing historical patterns where the cryptocurrency’s performance diverged from investor expectations.
Past instances, such as the December peak coinciding with a surge in Social Dominance, underscore the contrarian nature of Solana’s price movements.
Resilience amidst FUD
Despite experiencing periodic network disruptions over the past two years, Solana has consistently demonstrated resilience, bouncing back from setbacks and maintaining its position as a leading cryptocurrency.
The recent surge in price following the network outage is a testament to SOL’s ability to overcome challenges and thrive in the ever-evolving crypto landscape.
Source: https://www.cryptopolitan.com/solanas-recovery-and-social-dominance-surge/