Solana (SOL), one of the FTX crashes, is on the agenda again with $ 500 million in 1 hour. Former BitMEX CEO Arthur Hayes predicted that we would see such an altcoin buying spree recently.
Solana (SOL), the highest-paid altcoin project of the day
The FTX-linked altcoin project slipped out of the top 15 in November, losing more than 80% in just one week. Delist decisions of exchanges, ecosystem leaving NFT projects and intense FUD were the main reasons for the decline. With the new year, Solana (SOL) is reviving the prospects for recovery. On January 2, it rebounded the $10 support, up 20 percent.
500 million dollars in approximately 1 hour
Interestingly, Solana saw new buyers worth up to $500 million on the hourly timeframe today. Thanks to this momentum, it regained the $10 support that it had broken recently. The buying frenzy is also reflected in social search data.
Why is Solana (SOL) rising?
We can cite a recent NFT partnership as the reason for the rally. NFT platform Metaplex announced on December 31 that it will be collaborating with Solana. This paves the way for higher demand for SOL NFTs in 2023. In a second development, it announced a new upgrade that will enable copyright enforcement. This announcement from Metaplex’s Twitter account means Solana could become more attractive to NFT creators in 2023.
NFT creators can get a share of the profits every time a created NFT finds a new buyer. Now Metaplex plans to offer the same feature for Solana NFTs.
1/ Big Friday update on royalties ?
Creators will be able to start upgrading existing NFT collections starting next week and enable royalties enforcement
Here’s what you need to know to prepare ? pic.twitter.com/A2MZALiwHB
— Metaplex (@metaplex) December 30, 2022
According to the announcement, NFT creators can apply the upgrade from January 6th. Doing so will allow them to enforce royalties and even enforce optional rulesets for royalties. After this news, Solana’s performance in December reveals a slight increase in the last five days of December.
It also experienced a surge in social volume towards the end of December. This means that as social volume increases, SOL can see more.
Additionally, the timing of this social growth is also worth considering. It occurred around the same time that SOL plunged into the oversold territory. However, SOL’s price action did not easily break out of the oversold zone. This means that current demand is not enough to support a substantial return.
cryptocoin.com As we have reported, former BitMEX CEO Arthur Hayes foretold this rally. SOL is currently in an uptrend above $11.00. It still has a long way to go to the $260.06 top.