Solana price hits a new 2023 high — What’s behind the SOL rally?

Solana’s native token, SOL experienced an impressive 22% surge on Nov. 10, breaking past the $54 mark for the first time since May 2022. Notably, this surge occurred amid the continuous selling of SOL tokens by FTX’s bankruptcy estate. The Delaware Bankruptcy Court approved the sale of the failed exchange’s assets, which included 55.75 million SOL, in September 2023.

Investor enthusiasm for SOL’s price increase may be attributed to the fact that some of the tokens from the bankruptcy proceedings are either vested or locked. Furthermore, there’s a weekly sale limit of $100 million imposed as part of the FTX liquidation plan. In essence, the initial fear of asset liquidation has transformed into hope as investors realize the limited impact of the sales.

Solana’s total value locked (TVL), which measures the amount deposited in its smart contracts, has reversed its declining trend after six consecutive weeks.

Solana's DApps deposits have seen a 10% increase in the last three days. While the current 11.1 million SOL level is still below the 30 million SOL prior to the FTX exchange bankruptcy, this recent trend suggests that the worst period for the Solana network may be behind us.

Solana now ranks as the fourth-largest blockchain in decentralized finance (DeFi) TVL, accompanied by a 28% growth in the number of active addresses.