Solana Jumps 13% as Middle East Ceasefire Boosts Crypto Market

Solana (SOL) has emerged as a standout performer in the cryptocurrency market following the announcement of a ceasefire between Israel and Iran. The price of Solana jumped by 13% shortly after the ceasefire was confirmed, reflecting a broader risk-on sentiment that swept through the market. This rally was driven by easing tensions in the Middle East, which had previously weighed heavily on investor confidence. The ceasefire, brokered by the United States and Qatar, provided a much-needed relief for cryptocurrency investors, who had been cautious due to the ongoing regional conflicts.

The positive market sentiment was further bolstered by the cryptocurrency market's steady performance on Wednesday, following two days of gains. This stability indicated that the ceasefire had a calming effect on the market, allowing for a more optimistic outlook. Analysts suggested that this risk-on sentiment could strengthen further if the U.S. Federal Reserve signals rate cuts, a move that traders are closely watching for. The speech by Jerome Powell, the Fed Chair, was anticipated to provide hints on the central bank's monetary policy, which could influence the trajectory of the cryptocurrency market.

The ceasefire also had a significant impact on other cryptocurrencies, with Bitcoin reclaiming the $106,000 mark and Ethereum, along with other altcoins, experiencing double-digit gains. This rally was a testament to the market's resilience and the positive impact of geopolitical stability on investor confidence. The ceasefire news catapulted Solana back above $140, and it closed around $146 on June 23, providing a much-needed relief bounce for Solana bulls. This rebound was likely driven by the easing of tensions and the subsequent risk-on sentiment that permeated the market.

However, the ceasefire remains fragile, with ongoing regional tensions and retaliatory threats posing a risk to its sustainability. The truce, while providing a temporary respite, is at risk of being disrupted by further conflicts. Despite these concerns, the market's response to the ceasefire has been overwhelmingly positive, with investors embracing the risk-on sentiment and driving the prices of cryptocurrencies higher. The stabilization of world markets and the boost in investor confidence have been key factors in this rally, as the risk premium in oil and gold has cooled, reflecting a more optimistic outlook for the global economy.

On Solana, the ceasefire unleashed a wave of forced liquidations, with over $31 million in SOL perps wiped onchain, surpassing even CEX liquidations for the second day in a row. Onchain liquidations exceeded centralized volumes by 96%, clearing the decks for a structural rebound. While centralized markets found their footing, Solana validator revenue continued to cool, and net staking yields held steady at 7.23%. Supply dynamics began to shift as liquid staking tokens (LSTs) crept upward again, hinting at renewed confidence in passive yield strategies.

Risk is still here. But capital is learning where it wants to live. And increasingly, that seems to be Solana. The chain has remained the top performer across all L1s and L2s in network revenue for more than 13 weeks now. Developer activity has stayed elevated. And while SOL’s price action remains tethered to macro chop, the fundamentals are quietly diverging. Bitcoin, meanwhile, retraced from its recent highs, briefly dipping below $100,000 for the first time since early May during the weekend selloff. However, it reclaimed key levels after the ceasefire without triggering a cascade of further liquidations. Capital appears to be rotating within crypto, not exiting it.

This week’s activity exposed a deeper rotation in how capital behaves under stress. In the face of macro risk, Solana mostly saw reallocation rather than outflows. Liquidity stayed onchain, stablecoin volume surged and perp infrastructure absorbed volatility faster than centralized markets did. The cryptocurrency market experienced a notable surge following the announcement of a ceasefire between Israel and Iran, with Solana (SOL) emerging as a standout performer. The price of Solana jumped by 13% shortly after the ceasefire was confirmed, reflecting a broader risk-on sentiment that swept through the market. This rally was driven by easing tensions in the Middle East, which had previously weighed heavily on investor confidence. The ceasefire, brokered by the United States and Qatar, provided a much-needed relief for cryptocurrency investors, who had been cautious due to the ongoing regional conflicts.