The price of Solana’s SOL token has climbed over 20% since late September. The rally seems driven by a mix of technical upgrades, growth in applications, and rising non-fungible token (NFT) demand.
SOL faced selling pressure earlier this fall as bankrupt exchange FTX’s SOL holdings were set to be liquidated. But Solana’s price recovered as the court took steps to prevent market disruption.
Last week’s upgrade to Solana v1.16 also boosted confidence. The release brought privacy enhancements, validator improvements, and better network stability.
Furthermore, data shows daily active addresses interacting with Solana DApps increased 90% in October. NFT sales recently surpassed Polygon, with Solana processing $6.8 million in weekly NFT transactions.
The metrics indicate growing adoption and usage of decentralized apps and NFTs on Solana compared to rival networks. The developments have improved sentiment around the blockchain after the FTX bankruptcy drama.
However, stiff competition persists from Ethereum layer-2 solutions like Arbitrum and Optimism which boast far higher total value locked and activity. Still, if current growth trends continue, SOL could see further upside as developers capitalize on Solana’s low fees and high speeds.
