Solana has surged 100% this month, currently priced at $45. This is its highest since August 2022, before the collapse of FTX and Almeda Research. Interestingly, its recent boom coincides with FTX and Almeda Research Founder Sam Bankman-Fried (SBF) being found guilty of seven counts of wire fraud, conspiracy, and money laundering.
Meanwhile, the broader altcoin market is also pumping, with several top-performing projects up well over 100% this month.
Solana Pump Spurred on After SBF Charged
The collapse of FTX and Alameda shed a dark light on the crypto industry, with the malpractices of SBF and his accomplices making worldwide headlines, with the terms “cryptocurrency” and “fraud” often appearing side by side.
While not for the first time, this significantly damaged crypto prices. However, SBF’s recent prosecution has fared a bullish occurrence for the crypto industry.
This is because it illustrates that no one is free from the wrath of the law – even in cryptocurrency. Moreover, it shows industry outsiders that the Wild West of crypto is being tamed, providing a degree of stability that was not apparent at the peak of FTX’s debacle.
An opinion piece in the New York Times recently broke down the woes of SBF and how he leveraged illiquid tokens for loan collateral. This tremendous overleverage occurred when crypto prices were at their highest, thereby rendering SBF insolvent as prices dropped.
Yet, market confidence is growing because SBF is likely going to jail. Alongside the collapse of FTX and Almeda, several other infamously over-leveraged players also collapsed in the bear market, including 3 Arrows Captial, BlockFi, and Celsius.
Market participants view this as good, ridding crypto of irresponsible overleverage.
With these entities gone and SBF’s prosecution in the public limelight, investors are reentering the market with the conviction that the bad actors have departed.
X commentator, Hsaka noted that Wednesday marked the one-year anniversary of the FTX crash, stating, “The market is pushing new highs, doubling off the lows” despite being “pronounced dead” following the collapse.
Another factor driving this narrative is the rise of Proof-of-Reserves. Simply put, Proof-of-Reserves is a way of auditing an exchange to ensure that users’ assets are safe.
Binance popularised the concept after FTX’s collapse, and now, several top exchanges use it to prove their solvency and provide peace of mind to investors.
Ultimately, these factors have led to growing confidence inside the crypto markets, enabling countless altcoins to pump considerably.
Is It Altcoin Season?
In the wake of SBF’s prosecution, one of the projects gaining the most traction is Solana, which is up 110% this month.
Considering the strong market sentiment regarding SBF’s charges and other upcoming events like the Bitcoin halving and ETF approvals, the altcoin season seems to be finally here. With this in mind, we could indeed see Solana climb to $100 in the coming months.
Other FTX-related projects like Aptos have also experienced significant gains, but the recent pump is not limited to such projects.
For instance, Bitcoin-related altcoins like Bitcoin Minetrix have seen tremendous success. After launching its presale just six weeks ago, the project has already amassed over $3.7 million, luring investors with an effortless way to mine Bitcoin.
Meanwhile, Bitcoin ETF Token launched in a presale and surged over $100K within its first few days.
The project has been categorized as a Stake-to-Earn meme coin and utility token, which will burn 25% of its total supply in line with key Bitcoin ETF milestones.
Another category displaying bullish momentum is GambleFi. Crypto betting projects are hyped to massively outperform the market. This is due to their advantages over traditional casinos and the $800 million total market cap compared to the broader casino industry’s $263 billion valuation.
The most promising crypto casino project is TG Casino, an anonymous Telegram-based project currently undergoing a presale. The project has raised $1.7 million so far. However, investors could also consider the market leader Rollbit for a lower-risk, lower-reward crypto casino investment.
Lastly, the meme coin market is thriving, with market leaders Dogecoin, Shiba Inu, and Pepe up 28%, 23%, and 89%, respectively.
Meanwhile, other newer trending projects like Memecoin (MEME) and Meme Kombat (MK) are also causing a stir, battling it out for a top 3 spot against the above-mentioned meme projects.
Meme Kombat is the newest of the pair, currently in its presale stage, having raised $1.3 million so far, and MEME was recently listed on Binance.
The project’s success can be attributed to its blend of meme coin allure and utility-driven demand. It boasts a GambleFi platform, enabling users to bet on the outcome of AI-generated battles between famous meme coins.