- Bonfida token has surged by more than 165% from its lowest point this year.
- The rally is part of the strong comeback of Solana and its ecosystem.
- Bonfida is seeing more domain registrations during this surge.
Bonfida (FIDA) price continued its remarkable comeback as demand for Solana tokens and domain names surged. The token jumped to a high of $0.3685 on Friday, its highest swing since May 8th. It has soared by more than 165% from the lowest point this year, giving it a market cap of over $40 million.
Bonfida is a platform that aims to grow the Solana ecosystem by providing domain name registration. It aims to do what Ethereum Name Service (ENS) did for Ethereum’s ecosystem.
Anyone can register a Solana domain, which they can then use to build their businesses. According to its website, there are now over 200k .sol domain names and the number is growing continually.
Bonfida is also in the growing Solana NFT industry. Last week, the developers launched a limited edition card mint that is doing modestly well.
There are two main reasons why Bonfida’s token is jumping. First, it is rallying because of its correlation with Solana and its tokens. Solana has become one of the fastest-growing networks in the industry as its price jumped by over 600% since December.
Most Solana tokens have been in the green. Bonk is up by over 7,000% this year while Helium and Jito have also jumped. Therefore, there are signs that there is robust demand for these tokens.
Second, as noted, the Solana price surge has triggered more demand for Solana Name Service registrations. Data in its ecosystem shows that the aggregate sales have jumped sharply in December after remaining muted in the past few months.
Further, economic conditions seem good for Bonfida and other cryptocurrencies. The Fed has signaled that it will start cutting interest rates in 2024. Analysts at ING and Goldman Sachs believe that the bank will deliver more cuts than projected.
Additionally, China has moved back to growth, eliminating one of the top market risks. The country’s industrial production rose by 6.6% in November while retail sales jumped by over 4.3%.
