According to Bloomberg, Solana's token has doubled in value over the last 30 days, following the launch of a software solution called Firedancer and a broader rally in the crypto market. The Firedancer network testing was announced this week at a Solana-themed Breakpoint conference in Amsterdam, attracting developers, investors, and users of the blockchain. Solana is competing with Ethereum for a larger share of digital-asset activity, offering lower transaction costs and faster processing speeds.
VanEck Associates recently reported that the Firedancer update promises to increase Solana's current capacity by a factor of 10. Despite network outages in the past, Solana has experienced only one such incident this year, compared to 14 in 2022. However, the token is still trading at a fraction of the $260 achieved in 2021 during the pandemic-era crypto frenzy. Some market observers believe Solana will face stiffer competition in the upcoming bull cycle.
Institutional interest in SOL remains strong, as it is the best-performing altcoin in terms of inflows. In October, SOL saw a net inflow of $67 million via exchange-traded products, the second-highest after Bitcoin, according to data from asset manager CoinShares. A recent digital asset fund manager survey by CoinShares also revealed that around 7% of respondents believe Solana has the most compelling growth outlook, up from 3.4% last year.
