The SOL to ETH market has recovered to the level before the FTX collapse.

The cryptocurrency data tracking tool Kaiko released a report yesterday on the performance of the SOL market, showing that SOL has indeed shown market outperformance recently, with some indicators even rebounding to levels before the FTX collapse. SOL has seen trading volumes exceeding $10 billion this year.

SOL benefits from active network participation

In recent times, Solana has shown impressive performance in the market, with the SOL token price rising from 23 yuan to 41 yuan over the past month, a surge of about 73%, once again becoming the focus of the market. In fact, since the collapse of FTX last year, the price of SOL had dropped to below $10 at one point.

Now, a year after the collapse, Kaiko has summarized that the recent market performance of SOL is due to the active participation on the Solana network. For example, the liquidity staking protocol Jito has increased SOL staking rewards by addressing the MEV issue, successfully attracting users' attention and funds. Additionally, the largest on-chain decentralized exchange protocol Jupiter has announced the upcoming token issuance and airdrop.

The infrastructure on Solana is gradually improving, driving the growth of the ecosystem along with the token capital market.

SOL Market Data

SOL outperforms the ETH market. As a leading Layer1 solution, SOL is often compared to ETH. Since September this year, the market performance of SOL has been significantly better than ETH, with the price ratio between the two rising from 0.011 to nearly 0.025, returning to the ratio before the FTX exchange collapse.

According to exchange data, since the price increase of SOL starting on October 18th, Coinbase and Binance have led in net buying volume of SOL, with a total net purchase of approximately 4.1 million SOL tokens, equivalent to around $160 million based on today's token price.

However, the South Korean exchange Upbit has taken the opposite approach, with a net sale of nearly 4 million SOL tokens, once again demonstrating the uniqueness of the Korean market.

In comparison with other tokens, SOL ranks first in trading volume among altcoins in the US market this year, surpassing DOGE, LTC, MATIC, and XRP, which have traditionally been popular altcoins.

Other Key Market Data

Aside from SOL, Kaiko has also presented some interesting insights about the market:

• Market liquidity is only half of what it was before the FTX collapse: Market makers have left the market after suffering losses or have permanently changed their risk management strategies.
• Zcash ZEC has a long-term premium in Russia: ZEC has been consistently trading at a premium on the Russian exchange Yobit for several months, currently hovering around 9%, making it the second largest token by trading volume on that exchange.
• Coinbase's US market share is stagnant: Currently maintaining a 55% market share without benefiting from the regulatory pressure on Binance.US, other exchanges such as Kraken and Bitstamp are seeing growth.
• Decrease in correlation between Bitcoin and stocks: The 60-day correlation between Bitcoin and the Nasdaq index has dropped from 70% in September 2022 to 19%, with a correlation below 20% typically indicating no relationship.