Solana (SOL) Staking Activity Surges 17% as the Price of the Token Jumps 20%

The price of the native token of high-performance blockchain Solana (SOL) has surged more than 19% over the past week, to now trade above $201 amid an astounding recovery from a $15 low seen after the collapse of FTX.

Solana’s native token, SOL, has seen a remarkable surge of over 19% in the past week, now trading above $201. This surge comes amid a broader rally in the cryptocurrency market, with rivals also notching gains.

However, Solana’s investors appear to be betting on the cryptocurrency’s future performance, with the amount of SOL staked on the network increasing by about $2.6 billion over the last 60 days.

Solana Compass data indicates that the network’s staked SOL tokens rose by over 12 million during this period, now nearing 400 million SOL, valued at roughly $80 billion.

In the Proof-of-Stake consensus model used by Solana, holders of the network’s native token (SOL) can stake it to help secure the blockchain and earn rewards. Staked funds are locked for up to three days, indicating investors’ confidence in the asset's short-term performance.

notably, the cryptocurrency’s current total market capitalization is slightly over $95 billion, making the $80 billion figure significant. It's unclear whether the SOL is staked directly or through liquid staking solutions.

These solutions allow investors to maintain liquidity while staking and using their SOL elsewhere. This is achieved through a derivative token, which can be redeemed for the staked SOL plus the yield earned from securing the network.

Solana Compass data also shows that 441,510 wallets are currently staking funds on the network, with the largest stake exceeding $880 million. The median stake is around $240, while the mean stake averages at $64,870.

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