Solana Soars 100% in Q1: Overcoming FTX Fiasco and Beyond

Solana’s Price Surges 100% in Q1/2023

• In Q1/2023, Solana’s SOL price has risen 104%, outperforming all other top 25 cryptocurrencies including Bitcoin and Ether.
• January was the coin’s best month since August 2021 in terms of price performance, rallying by about 140% without any major fundamentals driving it up.
• SOL’s market dominance (SOL.D) dropped from 0.98% in January to 0.69% in March, suggesting traders rotated capital elsewhere.

Overreaction to FTX Links and Tainted Boss

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried, causing the coin’s price to fall nearly 95% in 2022. However, Messari’s analysis of the Solana ecosystem after the FTX collapse showed that its staking and decentralization were stable and actually improved its position after the FTX fiasco. This could explain why traders bought the dip in January 2023 which sent SOL’s price surging back up again.

Technical Analysis

As of March 31st, Solana is trading above two technical support levels: a horizontal trendline that has capped SOL’s downside attempts mostly throughout 2021 as well as a rising channel dating back to mid-February 2021 which also offers strong support for further upside moves.

What’s Next?

In February and March, Solana underperformed the broader crypto market after its January spike left it technically overbought. Nevertheless, with strong technical supports providing a solid foundation for future gains and continued development initiatives being rolled out by the team at Solana, there is potential for more positive growth ahead for this altcoin.


Overall, despite being linked with a tainted crypto entrepreneur and his collapsed venture projects last year, Solana has achieved impressive gains so far this quarter which suggests that it may be able to continue its upward trajectory going forward into 2023 if the right fundamentals are put into place by its team members at Solana.