Solana Soars 10% as Optimism Grows Post-FTX

• Solana (SOL) surged nearly 10% in the past 24 hours, surpassing $63 and experiencing its highest prices since last May.
• The rally follows the conviction of crypto tycoon Sam Bankman-Fried, a major early backer of Solana.
• Bankman-Fried, holding over $1 billion worth of SOL tokens, faced a sell-off from wallets linked to FTX.

Solana (SOL) jumped nearly 10% in the past 24 hours, leading gains among top cryptocurrencies as investors regain confidence in the blockchain project once heavily backed by the now-disgraced Sam Bankman-Fried.

SOL crossed above $63 on Wednesday, reaching prices not seen since last May. Trading volumes also spiked over 70% from recent averages to over $3.3 billion.

Solana rallies after SBF’s fraud charges

The rally comes on the heels of crypto tycoon Bankman-Fried’s conviction on fraud charges related to the implosion of his companies, FTX and Alameda Research. As a major early backer, Bankman-Fried acquired over $1 billion worth of SOL tokens.

When cracks in his empire first surfaced in November, SOL plummeted over fears of contagion. But with Bankman-Fried now sentenced and jailed, the cloud over Solana is dissipating.

Wallets linked to FTX have unloaded around $102 million worth of SOL to exchanges in recent months, likely for sale on the open market. But surprisingly, prices have proven resilient even as this SOL supply enters circulation.

Some argue the FTX bankruptcy estate may soon run out of tokens to sell based on on-chain data. At the same time, institutional demand for SOL appears to be accelerating.

In an interview, ARK Invest’s Cathie Wood called Solana a superior bet to Ethereum in terms of transaction speeds and costs. Her glowing review further buoyed sentiment.

With Solana finally emerging from the FTX fallout, developers and traders are returning in droves. The blockchain now processes over 2.5 million transactions per day, behind only Ethereum.

Solana still faces challenges, including network outages that have eroded trust. But with Bankman-Fried out of the picture, there is hope that Solana’s underlying technological strengths can shine through.

Its 10% rebound shows investors are once again ready to bet on the self-proclaimed “Ethereum killer.” Though risks remain, Solana appears to be turning a page toward brighter days ahead.