The native token of Solana, SOL, saw a significant 22% surge on November 10, surpassing the $54 mark for the first time since May 2022. This surge occurred amid continuous selling of SOL tokens by FTX’s bankruptcy estate, with 55.75 million SOL approved for sale by the Delaware Bankruptcy Court. However, investor enthusiasm was fueled by the fact that some of the tokens from the bankruptcy proceedings are either vested or locked, and there is a weekly sale limit of $100 million imposed as part of the FTX liquidation plan.
Notably, SOL’s resilience during the FTX bankruptcy token dump has impressed traders and analysts. The substantial 39% weekly gains have pushed its futures open interest to $745 million, the highest level since November 2021. SOL’s futures funding rate represents a 0.5% weekly cost for leverage longs, signifying bullish momentum. Beyond derivatives, there is evidence of growth in terms of deposits and usage of decentralized applications (DApps) within the Solana ecosystem, indicating a positive outlook for SOL.
Furthermore, Solana’s total value locked (TVL) has reversed its declining trend, and DApps deposits have seen a 10% increase in the last three days. This increase in activity has positioned Solana as the fourth-largest blockchain in decentralized finance (DeFi) TVL, accompanied by a 28% growth in the number of active addresses. However, despite the positive indicators, there are concerns about the sustainability of SOL’s bull run above $54, as the fundamentals hint at limited room for further upside. These include the comparison of Solana protocol’s accumulated 30-day fees with BNB Chain’s fees, raising doubts about the valuation after SOL’s recent rally.
