$2 billion flows into Solana in a day; Why SOL is pumping

With the majority of assets in the cryptocurrency sector back into bullish mode, headed by the industry’s representative, Bitcoin (BTC), which has already surpassed the $46,000 price mark, Solana (SOL) is no exception, having added $2 billion to its market capitalization in a single day.

As it happens, Solana’s market cap raced from $44.23 billion to $46.19 billion in mere 24 hours, which means it has added as much as $1.96 billion and grown by 4.43% during this period, as per the latest information obtained from crypto analytics platform CoinMarketCap on February 9.

Solana 24-hour market cap chart. Source: CoinMarketCap

Solana 7-day price chart. Source: Finbold

Notably, the significantly bullish activity of the currently fifth-largest asset in the crypto industry by market cap is taking place after the first network outage in a year, which occurred earlier this week, and Solana has not only managed to recover its price but has made an even stronger advance.

Solana price analysis after network outages. Source: Santiment

According to analysts at crypto and blockchain analytics firm Santiment, “Solana is one of the few altcoins outperforming Bitcoin this week,” with Monday’s outage “ended up being a local bottom, with the FUD fueling this price rebound,” as they observed in an X post on February 8.

Earlier, the pseudonymous stock and crypto investor Jelle pointed out the similarities between the movements of Solana and Ethereum (ETH) in 2020, “just before it went from $350 to $3,500 in a matter of months,” wondering if the same scenario would play out with SOL as well, in which case it would cross $1,000.

Solana vs. Ethereum price action analysis. Source: Jelle

All things considered, Solana is acting in line with the general sentiment in the crypto market and contributing to the overall optimism with its own exceptionally bullish movements. However, things in this sector can change rapidly, so doing one’s own research is essential before investing.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.