Solana has experienced a remarkable 11% surge in the past day, propelling it to become the fourth-largest cryptocurrency by market capitalization, overtaking Binance’s BNB token. With Solana’s price reaching $206.11 and its market cap hitting $92 billion as of early Monday morning, SOL has witnessed a staggering 40% increase since the same time last week, according to CoinGecko. This surge has also led SOL to surpass its previous all-time high market cap, achieved just days ago.
The recent rally has resulted in the liquidation of more than $1 million worth of short contracts in the past hour, surpassing both Ethereum and Bitcoin in the same time period, as reported by CoinGlass. In total, over $12 million worth of Solana short positions have been liquidated in the past day.
Short positions involve traders borrowing assets they expect to decline in price, selling them, and agreeing to repurchase them at a lower price in the future to profit from the difference. However, if the asset’s price increases significantly, traders may incur losses, leading brokerages and exchanges to liquidate their positions to minimize further losses.
While Solana has experienced a bullish rally, the ecosystem has faced challenges due to an issue with the SLERF meme coin launch. A developer accidentally burned $10 million worth of funds raised during a token presale. The developer addressed the issue in a Twitter space session titled “I fucked up,” explaining the situation to the community and expressing a commitment to resolving the matter.
The developer acknowledged the severity of the situation, emphasizing efforts to rectify the mistake and ensure the affected presalers are compensated. Despite the setback, the developer remained optimistic about the project’s future, aiming to address the community’s concerns and regain trust.