Solana’s cryptocurrency, SOL, which experienced a 94% decline in 2022, has reportedly made a comeback, attracting the attention of digital asset investors. 

The SOL token has surged in price by almost 800% since December 2022, Bloomberg reported Thursday (Dec. 21). 

One of the key reasons for Solana’s resurgence lies in technical improvements to its blockchain, according to the report. The blockchain has undergone significant upgrades, addressing previous network outages and performance issues. Since February, Solana has not experienced any network incidents. 

Solana’s revival can also be attributed to the renewed interest in nonfungible tokens (NFTs), the report said. While Ethereum was previously the dominant blockchain for NFTs, both bitcoin and Solana have surpassed Ethereum in NFT trading volume. 

A new NFT marketplace called Tensor has emerged on the Solana platform, capturing 57% of trading volume compared to Magic Eden’s 37% in a recent 24-hour period, per the report. Tensor offers an NFT experience similar to professional trading and allows users to profit from quick price changes. 

However, Solana’s resurgence is not without risks and speculative elements, according to the report. One notable factor is the popularity of a Solana memecoin called BONK. Created as a joke, BONK has gained significant attention and risen around 400% in the past month, with a market capitalization of $1.2 billion. 

The anonymous founders and unclear motivations behind BONK contribute to its highly speculative nature, leading some experts to compare it more to gambling than investing, the report said. 

Solana’s resurgence also reflects broader market sentiments, per the report. The Federal Reserve’s recent pivot toward interest-rate cuts has caused traders to flock back to risk assets, including cryptocurrencies. Any sentiment change toward risk assets can significantly impact the crypto market, which is often seen as the riskiest asset class. 

PYMNTS reported on Wednesday (Dec. 20) that the entire crypto market has once again captured the attention of investors and enthusiasts, as evidenced by a recent surge in popularity of memecoins and NFTs. 

As the market experiences a resurgence, larger tokens like Solana and Avalanche have been among those seeing a surge in value and becoming some of the top gainers this year.