While Bitcoin consolidated near $36,000 on November 16, 2023, the real story of the day belonged to Solana. The fifth-largest cryptocurrency by market capitalization surged to $68 early in the session — its highest price since May 2022 — before settling around $62 by the afternoon. The remarkable move extended SOL’s weekly gains to over 35% and pushed its year-to-date return past 500%.
TL;DR
- SOL hit $68 on November 16, its highest level since May 2022, before pulling back to $62
- Solana is up more than 500% from its January 1 price of $9.97
- Altcoin ETPs surged 26% in October, with Solana-focused products up 172%
- Investors poured $12 million into Solana ETPs in the prior week alone (CoinShares)
- Bitcoin traded near $36,600, down 4.94% on the day amid broader consolidation
From FTX Ashes to Market Darling
Solana’s resurgence is one of the most dramatic comeback stories in crypto history. The token bottomed out near $9 in late 2022 following the catastrophic collapse of FTX, whose founder Sam Bankman-Fried had been closely associated with the Solana ecosystem. The FTX fallout exposed Solana’s vulnerability to concentrated institutional exposure, sending the token into a spiral.
Yet nearly a year later, investors have decisively moved past the FTX overhang. Bankman-Fried was convicted on all seven counts of fraud on November 2, 2023, and the Solana community has been quick to separate the protocol’s technology from its most infamous backer. The network’s technical improvements have played a significant role in restoring confidence.
Network Reliability Improves Dramatically
One of the primary criticisms leveled at Solana during its earlier growth phase was frequent network outages that would take the blockchain offline for hours at a time. In a significant turnaround, the network experienced only a single major outage throughout 2023 — a five-hour disruption on November 14, just two days before the price surge. The dramatic improvement in uptime has bolstered developer confidence and attracted new projects to the ecosystem.
The Solana network is also in the process of rolling out several technical upgrades designed to enhance throughput and reduce latency, further differentiating its high-performance architecture from Ethereum’s more methodical approach to scaling.
Institutional Money Flows Into Solana
According to a CoinShares report, investors poured $12 million into exchange-traded products tracking Solana during the week leading up to November 16, even as they pulled back from other altcoin funds including Litecoin and XRP. The inflows contributed to a 172% surge in Solana ETP assets under management during October, which climbed to $279 million from $102 million at the end of September.
More broadly, altcoin-focused ETPs increased by 26% in October, according to digital asset investment firm Fineqia. The data suggests that institutional investors are increasingly willing to look beyond Bitcoin and Ethereum for portfolio diversification — a trend that has benefited Solana disproportionately.
Liquid Staking and DeFi Growth
Analysts at CoinShares pointed to a significant uptick in liquid staking activity on Solana as another driver of the rally. Protocols like Jito, Marinade, and MarginFi have made it easier for SOL holders to earn yield while maintaining liquidity, creating a positive feedback loop that encourages holding rather than selling.
Max Shannon, a research analyst at CoinShares, noted that the increase in open interest volume and funding rates — fueled partly by a surge in liquidations — has amplified SOL’s upward momentum. He also suggested that Solana’s 94% decline from peak to trough made it an attractive contrarian play.
The Road Ahead
Despite the extraordinary rally, analysts urge caution. Matteo Greco of Fineqia noted that Solana’s price moves are closely tied to its devastating performance in late 2022, and the token remains far below its all-time high of nearly $260. The remarkable uptrend, he suggested, can be directly linked to the severity of the downturn that preceded it.
Nevertheless, with improving network reliability, growing institutional adoption, and a thriving liquid staking ecosystem, Solana’s fundamentals appear stronger than at any point since the FTX crisis. Whether the rally can sustain itself into the new year may depend on the broader market’s direction — particularly the outcome of the spot Bitcoin ETF decision expected in January 2024.
Why This Matters
Solana’s 500% rally from its post-FTX lows is more than just a price recovery story. It represents a fundamental reassessment of the altcoin’s technology and ecosystem resilience. The network’s improved reliability, combined with growing institutional interest through ETPs and liquid staking, suggests that Solana has matured beyond its earlier growing pains. For the broader crypto market, Solana’s resurgence signals that capital is rotating into high-performance blockchain platforms — a trend that could reshape the competitive landscape for years to come.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
bought the sub-10 bottom last december. diamond handing through the SBF conviction was the hardest thing i’ve done in crypto
A 500% YTD return is extraordinary, though one has to remember the starting point was essentially zero after the FTX collapse. Context matters.
The 26% surge in altcoin ETPs that October was the tell. Smart money was positioned well before retail caught on.
only one major outage all year after being the poster child for network failures. the firing core engineers actually shipped something for once
12M into Solana ETPs in a single week. institutions were buying the dip while everyone on CT was calling it dead lol