The Most Recent Drivers Of The SOL Rally Are Questioned, Prompting Rectifications

The price of SOL is starting to fall as investors may be wondering why there was a double-digit increase recently.

Source: forkast.news

During October 30 and November 2, there was a significant 36.6% spike in the price of Solana's SOL. But on November 6, it saw a 10% correction down to $40 due to its inability to break through the $44.50 barrier. In light of this trend, numerous financiers are wondering if Solana's current $16.9 billion market valuation is justified by the ecosystem's development and network operations.

The Solana Breakpoint 2023 worldwide event took place in Amsterdam on November 2, coinciding with SOL's peak of $44.50, its greatest value since August 2022. In the face of calling SOL "merely a meme," co-founder Arthur Hayes acknowledged being a "degen" and buying in the coin at this time due to the market hype.

The Solana Foundation addressed a strong critique of the layer-1 blockchain, which provides parallel processing for smart contracts, by announcing the test network's launch of Firedancer, an innovative client designed to improve the speed and dependability of and reduce the hardware needed for validators, at the Breakpoint event. Furthermore, the Solana Institute stated on October 31 that the organization's data set was now accessible on Google Cloud BigQuery, a server information storage service that has the use of machine learning and AI integrated right in. Engineers and businesses may now safely and openly access historical data and predictive insights.

The Solana Organization has continued to be active on the front of growth. This comprises the v.1.16 update, which added secret transactions for SPL tokens on the Solana system using zero-knowledge proof, being approved by testers in September. Nevertheless, not every information has been good for Solana, even though the price of the coin has performed well. For instance, the decentralized liquid stakes protocol Lido Finance declared on October 17 that it would shut down on the network due to unhealthy finances and low fees. This announcement was followed by a community vote that sealed the service's closure.

Whether the on-chain traffic and statistics associated with decentralized apps (DApps) justify the SOL hike in prices is the main unanswered topic. It is therefore important to compare Solana's ecosystem expansion and on-chain statistics to its rivals.

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