Solana’s SOL token outshined many other major cryptocurrencies, rallying over 900% as the digital currency benefited from various tailwinds.
Solana’s SOL token had a banner year in 2023, outperforming several other major digital currencies as various factors combined to fuel aggressive price appreciation.
The cryptocurrency, which is the native digital asset of the Solana network, reached an annual high of nearly $125 around Christmas, CoinMarketCap data shows.
At this point, the altcoin, which has generated quite a few headlines lately, was up more than 1,100% since the start of the year, additional CoinMarketCap figures reveal.
While SOL pulled back over the next several days, it still climbed over 900% in 2o23, leaving other major cryptocurrencies in the dust.
These sharp price increases took place after the aforementioned cryptocurrency had a rough couple of years, rallying to an all-time high around $250.00 in late 2021 and then plummeting below $10 the following year.
The SOL token languished for much of 2023, stuck in the doldrums below $25 until October, when it experienced a sharp rally.
Multiple Factors Drive Gains
When explaining the impressive gains that SOL experienced in 2023, analysts highlighted multiple variables that helped drive price appreciation.
“Throughout 2023, several factors have contributed to the remarkable surge in Solana’s price, escalating from around $9 to $121 on December 25th, marking an impressive 1115% return,” said Hosam Mahmoud, a research analyst at CCData.
“One key driver has been the growing confidence in Solana’s performance, particularly its fast transactions, low fees, and increasing popularity,” he stated.
