As the broader cryptocurrency market registers a formidable recovery by surging 3.5% in the last 24 hours, Solana registers the most gains shooting past $100. At press time, the SOL price is up 6.58% currently trading at $101.73 with a market cap of $44.4 billion.
Solana Rebounds Strongly, Outperforms Bitcoin
According to on-chain data provided by Santiment, Solana (SOL) has emerged as one of the standout performers among altcoins this week, showcasing a notable surge in value compared to Bitcoin. The cryptocurrency has surged back above the $102 mark, indicating a resurgence in investor confidence.
Over the past 36 hours, the SOL/BTC pair has experienced a significant increase of 4.5%, marking a positive turn of events for Solana. This surge comes in the aftermath of an outage that had concerned traders earlier in the week. Interestingly, what was initially perceived as a setback for Solana turned out to be a local bottom, with the fear, uncertainty, and doubt (FUD) surrounding the outage serving as a catalyst for the subsequent price rebound.
Earlier this week on Tuesday, February 6, the Solana blockchain network suffered a massive outage with 5-hours of downtime. Later, the blockchain network resumed production as developers released an upgrade to v1.17.20 and a restart of the cluster by validator operators.
The downtime occurred because of a malfunction in the BPF loader, also known as the “Berkley Packet Filter,” which is responsible for deploying, upgrading, and executing programs on the Solana network. To resolve the issue, developers have reworked the BPF code lines on the development network.
On-chain Indicators and SOL Price Prediction
On January 31, the Solana blockchain logged its highest number of active users on the layer-1 network since its inception in 2020, reaching a total of 875,940 users. However, as per the data from Token Terminal, the network activity has been on a bit of a decline in the first week of February. Besides, the network activity seems to have taken a further hit amid the outage episode.
On the upside, the major resistance level for Solana stands at $110. If the SOL price manages to breach that, it could stage another 50% rally all the way to $170.
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