Solana is surging amid the altcoin rally, nearly tripling its price over the past month

Cryptocurrency platform Solana logo.

Jakub Porzicki | via NurPhoto | Getty Images

the price of Solana The token jumped on Wednesday amid the ongoing altcoin rally and prominent tech investor Cathy Wood's bullish remarks on the token.

Solana was last up nearly 12% at $62.38. Before that, it increased by 16%. Last month it almost tripled in price.

The spike comes a day after Ark Invest CEO Cathy Wood applauded this year's performance on CNBC.

“Solana is doing a really good job,” he told CNBC's “Squawk Box” on Tuesday. “Ether was faster and cheaper than Bitcoin [back] per day – that's how we got the ether. Solana is even faster and [more] more cost-effective than air.”

Wood went on to say on CNBC Pro Talks that he “really likes Solana” and also noted that its downtime — during network outages, maintenance or outages — is “much higher than Ethereum.”

“People are willing to put up with it because maybe the transaction sizes aren't that big or not that important for whatever reason, they just want speed and value as their top priority,” Wood told CNBC PRO. “Each one [the networks] There will be a place.”

Solana, the sixth largest crypto token by market cap according to CoinGecko, has become the darling of the crypto world in the 2021 bull market as it offered investors a vision similar to Ethereum, but without the slow and expensive transactions.

Activity on Solana has increased throughout the year, particularly in liquid stack protocols such as Jito, according to data provider Kaiko. The token tops the list of most traded altcoins on US-accessible exchanges this year, beating Dogecoin, Litecoinpolygon MATIC and Ripley's XRP.

More recently, the token has followed a broader crypto market rally led by Bitcoin that began on October 24, when the coin doubled on the year to top $35,000 for the first time since May 2022. Soon after, the ether followed, rising to a key psychological level. Level $2000. Historically, altcoin rallies follow Ether.

“After October 24, Bitcoin began to lose its momentum, which in Bitcoin bull markets is causing traders to move down the risk curve and move to alts as a way to chase huge profits,” said Mikolaj Zakrzovsky, an analyst at data provider CryptoQuant.

This time a year ago, the coin was at a critical juncture after the FTX explosion sent it down 70% in two days and briefly traded below $10. FTX and its current leader, Sam Bankman-Fried, are widely credited with providing significant funds and resources behind the Solana project to get it off the ground.

Solana is up around 510% this year and was one of the best cryptocurrencies of 2023. Bitcoin and Ether obtained about 120% and 68%, respectively.