Can Solana (SOL) reach $20 in January 2023?

Decentralized finance (DeFi) token Solana (SOL) was among the biggest losers of the 2022 crypto bear market, with the correction accelerating towards the end of the year. Some of the losses were due to the platform’s close relationship with the now bankrupt crypto exchange FTX.

Can Solana (SOL) reach $20 in January 2023?

However, Solana seems to be turning over a new leaf by increasing investor interest, resulting in the asset regaining key positions. As of January 6, SOL had a market capitalization of $4.85 billion, representing approximately $1.59 billion of inflows from $3.26 billion recorded on December 30.

Indeed, its market cap on the weekly chart peaked at $5.16 billion on Jan. 4, according to data from CoinMarketCap.

Can Solana (SOL) reach $20 in January 2023?  - Picture : 1

Solana seven-day market cap chart. Source: CoinMarketCap

In particular, Solana’s price benefited from increased buying pressure, which helped the token regain important support levels. At press time, SOL was worth $13.09, which is a 43% weekly gain.

Can Solana (SOL) reach $20 in January 2023?  - Picture : 2

Solana seven-day price chart. Source: Finbold

Solana and FTX concerns

It’s worth noting that Solana has recorded significant losses of as low as $8 as concerns over the sustainability of the ecosystem arose following her relationship with FTX and its founder, Sam Bankman-Fried (SBF).

With SBF facing scam allegations, the Solana network faced the threat of a developer exit, jeopardizing the platform’s effort to emerge as an ‘ (ETH) killer’. However, Solana management argues that the focus should be on network activities, not price movements.

Along this line, the possible negative impact of the FTX fallout has complicated matters for Solana, considering the network is under criticism for regular outages.

Amid the concerns, Solana co-founder Raj Gokal shared his future plans for the platform, noting that there is a lot of activity around L1 blockchains. Blockchains connect social networks, financial systems, nation states, cultural movements and payment networks.

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