The euphoria around potential retroactive airdrops by projects on top of Solana (SOL) will push the SOL price higher and higher, top trader and analyst Jacob Canfield foresees.
Solana (SOL) price to expand rally, airdrop hunters to blame
The price of SOL, the core native asset of the Solana blockchain, has a very simple bullish thesis that will likely push its price higher. The interest of retroactive airdrop hunters seeking lucrative bonuses is the top catalyst of potential SOL price growth, Canfield opined on X today, Dec. 9, 2023.
More and more traders are having FOMO after the whopping success of the Jito (JTO) airdrop, which brought five- and even six-digit bonuses to SOL holders who performed standardized tasks on the Jito staking protocol.
As they are running toward other protocols with potential crypto token distributions, they will need more and more SOL assets to authorize transactions, join conversion and staking mechanisms:
The network effect of seeing all these people getting 5-6 figure air drops will result in a significant number of people buying $SOL and bringing assets over to farm the airdrops
As such, Canfield attributed the bullish prospects of Solana (SOL) to simple laws of supply and demand.
As covered by U.Today previously, BitMEX founder Arthur Hayes also came up with an uber-bullish prediction on the Solana (SOL) price.
Solana (SOL) is changing hands at $76.94, being 5.5% up in the last 24 hours.
Jito (JTO) price rocketing
The new frenzy of Solana-based cryptocurrencies was triggered on Thursday, Dec. 7, 2023. Jito (JTO), a Lido Finance competitor on Solana (SOL), organized a massive airdrop of its token JTO.
The project distributed over $225 million in JTO equivalent to the attendees of online activities on the platform.
After the airdrop, the price of JTO did not drop. In the last 24 hours, it added over 32% as it inches closer to $4.
The trading volume in JTO pairs on major exchanges exceeded $1.1 billion, which made it the 12th most popular cryptocurrency two days after launch.