Solana (SOL) Rallies By 20% In the Past Week; Here’s Why 

Solana (SOL) Rallies by 20% In the past week; Here’s Why 

Popular blockchain network Solana has enjoyed a positive week, with its native token rising by double digits within this period. This rally comes against the backdrop of the banking crisis that has affected the global financial system. 

Solana Shows Impressive Rally

One of the reasons for this rally is the increase in smart contracts on the Solana blockchain network. According to statistics from Artemis, Solana has experienced a significant increase in unique contracts deployed on its network. The on-chain data revealed that the increase is not just unique to March and is the highest level for the entire year. 

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This suggests that more individuals and teams are building on the Solana ecosystem despite previous problems of outages on the Solana network. Solana is known for its highly scalable ecosystem, and the number of smart contract deployments could be a major factor for this rally. 

Furthermore, Solana is benefiting from the banking crisis that has engulfed the U.S financial system in recent weeks. Three banks shut down within days before the Federal Reserve injected over $300 billion in bailout funds. 

Unsurprisingly during periods of the financial crisis, Investors tend to move their assets to safer options, and the crypto market has been a major beneficiary. Solana has followed this trend, with most coins in a bullish frenzy. 

Will Solana hit $25 

Solana (SOL) has experienced a steady recovery, with the coin moving from $19.3 a week ago to its current levels. At the time of writing, Solana is up 7.35% in the last 24 hours and trading for $23.25. 

Solana is moving towards $25 mark: Source @TradingView

Several analysts believe Solana could hit the $30 mark in the coming weeks. However, it has to surpass the $25 resistance mark before moving to its next major milestone. The bullish sentiment is strong, and SOL could surpass this level in the coming hours. However, if the market turns red, the next support levels will be around $22.50 to $23. 

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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