While SOL’s price has been stuck below $145 since early July, there’s positive news brewing beneath the surface. Solana’s network fundamentals, as evidenced by healthy on-chain activity and a favorable derivatives market, are showing strong signs. This strength could be the very push SOL needs to break past its current resistance and reach new highs above $160, a level last seen over five weeks ago and is just reaching again now as crypto rebounds.
Here’s why there’s reason for optimism:
- Solid Network Usage: Metrics on the Solana blockchain indicate no signs of stress, suggesting continued user engagement and a healthy ecosystem.
- Potential Price Reversal: SOL’s derivatives market hints at a potential bullish trend, with investors positioning themselves for a price upswing.
- Relative Strength: Even during a broader market downturn, SOL’s decline was smaller than some competitors, showcasing its relative resilience.
This combination of factors suggests that SOL is primed for a potential breakout, independent of the overall market’s direction.
Solana Network Surges in Popularity, TVL Matches BNB Chain for Top Spot
Solana’s strong fundamentals continue to shine, with its Total Value Locked (TVL) surging to match that of BNB Chain, a major competitor, for the first time ever. This milestone signifies growing investor confidence in the Solana ecosystem.
Here’s why Solana is experiencing a surge:
- Closing the Gap: Previously trailing BNB Chain by a significant margin, Solana has rapidly narrowed the gap in TVL. This suggests traders are increasingly deploying capital on the Solana network.
- Solid Ecosystem Growth: Despite underperformance by some SPL tokens, Solana boasts a healthy and growing DeFi ecosystem. Liquid staking platforms like Jito, Marinade, and Kamino are attracting significant user deposits.
- Direct Competition for Second Place: Solana is now a major contender for the number two spot in TVL, surpassing competitors like Tron whose dominance relies heavily on a single application.
This positive momentum indicates a bright future for Solana. While some price fluctuations might occur, the network’s strong foundation positions it for continued success.
Solana Network Sees User and Volume Growth Despite Broader Market Downturn
Solana’s network is experiencing positive momentum in user activity and transaction volumes, defying trends within the larger cryptocurrency market. Here’s a breakdown of the good news:
- Rising User Engagement: Solana’s DApp user base grew by an impressive 19% over the past week, contrasting with declines seen on Ethereum, BNB Chain, and Polygon.
- Increased Transaction Volumes: Solana DApps processed $703 million in transactions over the past seven days, reflecting a 12% increase. This stands out against the 37% drop observed on market leader Ethereum.
- Raydium Shines: Solana’s decentralized exchange, Raydium, saw a surge in activity with 1.71 million active addresses in the last week, a significant 39% jump. This dwarfs the number of active addresses on BNB Chain’s leading DApp during the same period.
- Balanced Market: Solana’s futures markets show a healthy balance between buyers and sellers, with the eight-hour funding rate currently near zero.
While SOL’s price might require additional factors to return to $160, the positive on-chain and derivatives metrics suggest a robust underlying network with strong user engagement. If you’re looking to diversify your savings, then a Solana IRA may be just what you need. Contact us today or get started online.