Solana (SOL) saw a sudden 12% jump coming out of the weekend which sent the digital asset’s price rocketing toward $30. This was obviously a welcome development for supporters of the cryptocurrency but what was behind this rapid surge in the price?
Why Solana Pumped By 12%
On Monday, the Helium Network revealed that it will be migrating to the Solana blockchain. This news was corroborated by the official Solana Twitter handle, sparking a wave of positivity across the entire community.
In the official blog post shared by Helium, it said that the migration to the new Layer 1 blockchain would happen in a month on March 27th. It comes after the Solana community approved the HIP-70 which would allow the Helium network to scale on Solana.
“The completion of the migration marks a new era for the Helium Network, enabling it to achieve greater scale and truly become a network of networks,” Helium said in the blog post.
Helium is already growing and is becoming a popular provider with almost 1 million hotspots, the company said. It also added that its move to Solana was brought about by the fact that the blockchain provided it the speed and scale it would need to operate on a blockchain while enabling utility.
Helium Network News Spurs SOL Recovery
Solana’s recovery over the weekend sent the price back to pre-FTX collapse levels to a local peak of just under $27. This recovery arguably puts SOL at a fair value where it would be if it wasn’t for the FTX implosion. Now, SOL is now able to contend with competitors as it is seeing reasonable gains.
For the future bull case for the cryptocurrency, the rally was triggered by just Helium’s announcement. The migration is yet to be completed, so there could be more recovery to be seen in the one month leading up to the official migration.
Solana’s market cap is now sitting at $9.9 billion which makes it the 11th largest cryptocurrency by market cap. It is also the best-performing coin of the top 15 cryptocurrencies by market cap in the last week, surpassing MATIC’s 27% with weekly gains of 28.77%.
At the time of writing, SOL is still holding steady above $26 after recording over 12% in the last day alone.
SOL price rallies above $26 | Source: SOLUSD on TradingView.com