Following an extended duration of diminished activity, the Solana network and its ecosystem have regained momentum as combined activities soared to unprecedented levels. While SOL’s value may be facing challenges amid increased volatility, its network has showcased strength, suggesting an optimistic outlook for SOL.
TVL On Solana Climbs To 22-Month Peak
The Ethereum network’s most formidable rival, Solana, is slowly but surely taking center stage in the wider DeFi landscape due to its recent achievements. With the SOL ecosystem gaining traction once more, it solidifies its status as a premier blockchain in the constantly changing realm of cryptocurrencies.
The informative portal IC News reported that the Solana network is witnessing noteworthy growth as its Total Value Locked (TVL) escalates despite a 9% decline in SOL from March 28 to April 4. The platform noted that SOL’s TVL soared to its highest point since June 2022, achieving a 22-month peak.
SOL’s TVL increased by an additional 53.8 million SOL, indicating a greater than 14% monthly growth since June 2022. This landmark signifies amplified activity across the network’s DeFi protocols, solid ecosystem engagement, and a renewed wave of investor faith.
Despite SOL’s price showing a bearish trend, IC News emphasized that the Solana network consistently surpasses other networks such as BNB Chain in terms of trading volume and deposits. Currently, SOL’s TVL is assessed at $6.5 billion, placing the network ahead of the BNB Chain by over $780 million.
Moreover, its Decentralized Exchange (DEX) volumes exhibited extraordinary resilience as Total Value Locked (TVL) reached its peak since June 2022. The Solana network presently commands approximately 24% of the DEX market share, outpacing BNB Chain and BASE networks, which hold 12% and 10% of the DEX market share, respectively.
If the network’s expansion persists, it could result in SOL’s price recovering in the forthcoming weeks, as increased investor involvement and DeFi activities frequently impact short-term price surges.
New Crucial Zone For SOL’s Price
Although SOL’s network performance may have improved, its price continues to face challenges in regaining upward momentum, causing it to revisit essential support levels. Technical analyst and trader, Ali Martinez, examining the altcoin’s behavior, has identified a new crucial zone as volatility heightens.
Ali Martinez noted that the $120 level constitutes a pivotal zone for SOL, advising investors to monitor its next movement. This arises from significant trend reversals observed at this level in the past.
Data from CoinMarketCap indicates that Solana’s price has undergone a substantial decline, dropping below the $100 level with nearly an 18% fall in the last 24 hours. Despite this sharp downturn, investors are demonstrating significant confidence, taking advantage of the recent dip as evidenced by an over 257% rise in trading volume in the past day.
Featured image from Unsplash, chart from Tradingview.com
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