As the crypto market continues to sell off, SOL defies the trend and reaches a new high

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Since people tried to bet FTX CEO Sam Bankman-Fried that SOL is overvalued at $2, the coin has been on an uptrend.

SOL is a force to be reckoned with. While the cryptocurrency market was collapsing, the ‘samecoin’ SOL reached a new all-time high. After reaching a new high just above $41, the market pulled back nearly 24% to $31.3850. SOL is currently trading at around $35.

This isn’t the first time SOL has defied expectations. Although BTC, Ether, and altcoins took a beating during the last sell-off over the weekend, SOL recovered quickly to touch ATH at the time.

One explanation may be that SOL has less degen trading. The most common cryptos in liquidations are Bitcoin (BTC), Ethereum (ETH), XRP, DOGE, Cardano (ADA), Polkadot (DOT), and BNB.

SOL only accounted for $18.11 million of the $10.1 billion liquidation day, both long and short. According to Bybt, $37.73 million was liquidated in the last 24 hours, with the bulk being short.

SOL was trading at about $1 just before entering 2021, up 1,751 percent YTD. Around this time, in early January, Sam Banman-Fried, the founder and CEO of crypto exchange FTX, bet with a trader who said SOL was overvalued at around $3, saying,

“I’ll buy as much SOL as you have right now at $3. Sell me all you want. Then go fuck off.”

So far, SOL hasn’t seen that amount again. With a market capitalization of $9.25 billion, it is the 15th largest cryptocurrency.

SOL is the native token of the decentralized blockchain Solana, which boasts scalability, low fees, and fast transaction processing, which is Ethereum’s biggest bottleneck.

Solana and BSC have been drawing most of this audience, while Ethereum’s congestion and high fees have priced out smaller users.

Solana is a proof-of-stake (PoS) blockchain in development by Ethereum, in which SOL token holders are rewarded for staking their tokens to protect the network.

To construct Serum, a decentralized exchange, Bankman-team Fried’s chose the Solana blockchain (DEX). Serum confirmed that the SerumSwap has been depreciated, and liquidity has been withdrawn. The group said,

“After considerable discussion with liquidity providers, code maintainers, and users, it was determined that alternatives provide suitable product functionality, and the high maintenance overhead was no longer justified.”

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