Why Solana Is Surging Today

Since yesterday afternoon, the price of Solana (CRYPTO: SOL) traded roughly 12.4% higher, as of 2:06 p.m. ET today. The crypto sector as a whole rebounded after a brutal sell-off in recent months, and there is also some token-specific news for Solana.

Kalshi adds Solana contracts

Crypto appears to have finally found support today. The price of Bitcoin, the world's largest cryptocurrency and a bellwether for the sector, traded nearly 7% higher as of this writing, after shedding over 30% of its total market cap since early October.

Image source: Getty Images.

While it's nearly impossible to time the crypto market and also difficult to understand all the volatility in the sector, cryptocurrencies appear to have broken away from the broader market, which has stabilized more recently. It's possible that crypto's rebound was simply overdue, especially with investors once again broadly expecting another interest rate cut from the Federal Reserve at its final meeting of the year.

In other news, Kalshi, a website that allows people to bet on various events, will now enable consumers to purchase and sell tokenized event contracts on Solana's network. Kalshi is reportedly pursuing this move to win over more crypto investors interested in event contracts, according to CNBC. Furthermore, consumers' bets will supposedly be more private by trading tokenized contracts.

Solana's strong network continues to show real-world utility

Solana's blockchain network is one of the strongest in the industry from a technical perspective, as it has the potential to process tens of thousands of transactions per second. It continues to demonstrate strong real-world utility, winning more business from companies like Kalshi. While all cryptocurrencies will continue to be volatile, I do think Solana has a very promising long-term future.

Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Solana. The Motley Fool has a disclosure policy.