The native token of Solana, SOL, has increased 20% in the past day, extending a three-week uptrend that has completely erased the asset’s annual losses.
As of the time of writing, market data indicated that the token was trading for close to $54. The last time it had reached that level was in the weeks after the catastrophic collapse of Terra Luna’s market in May 2022.
The price increase occurs after Solana’s annual conference, despite market trepidation regarding events at FTX Group, a significant SOL token holder. Regarding its intentions regarding its large stake, that bankrupt company has conveyed conflicting messages.
The increase in SOL’s price may benefit FTX’s numerous creditors. The CEO of 117 Partners, a business that closely monitors the distressed asset markets, Thomas Braziel, claims that the asset is currently trading in a range that will make cryptocurrency exchange users whole. Sam Bankman-Fried was just found guilty of embezzling that client’s funds.
That would, of course, mean that SOL would need to maintain this level for years at the very least. A large portion of FTX’s SOL holdings are restricted until 2027 or beyond.