Altcoin Solana, which has outperformed all other major cryptocurrencies, is up 27% this week.
However, it lost some of its gains, falling over 8% in the last 24 hours.
Some analysts suggest that Solana's impressive market move is simply a price rebound after being undervalued for a long period of time.
CoinShares Research Analyst Max Shannon believes that Solana is accompanying Bitcoin's rise and that its rally is primarily driven by hype.
On the other hand, YouHodler Markets Chief Ruslan Lienkha sees the latest fluctuation as a price recovery. “Solana experienced a dramatic drop in value following the FTX collapse, and the coin missed the uptrend in the crypto market from the beginning of this year,” Lienkha said.
Ryze Labs Founder and Managing Partner Matthew Graham pointed to the strong developer foundation behind SOL. “From day one, Solana has been on a mission to gain awareness among developers who will launch unique platforms and products. The price movement reflects the work from engineering to community development that has made Solana a vibrant ecosystem full of useful products,” he said. He added that he doesn't see Solana's momentum slowing down.
However, CoinShares' Max Shannon sees Solana's metrics as still muted due to flat growth from transactions, total key value, fees, revenues, and developer counts.
*This is not investment advice.