Solana's SOL Price and Network Activity Surge Amidst Wider Cryptocurrency Market Recovery
Summary:
The value of Solana (SOL) is on a rise, reflecting a wider recovery in the cryptocurrency market. SOL's price stands at $159, marking increases of roughly 5% in the past 24 hours and 36% from its local low over the last five weeks. The rise occurs alongside increased pricing of memecoins on the Solana network, contributing to heightened on-chain activity. Demand for SOL futures has stayed firm despite general market downturns. In addition, data reflects an increase in Solana's total value locked (TVL) to $4.8 billion, indicating growing trader interest in the DeFi ecosystem and continuous new user attraction due to low transaction costs.
The price of Solana (SOL) is on an upward trajectory, benefiting from a general recovery trend in the larger cryptocurrency market. The surge in SOL's price comes on the heels of Bitcoin's lift, which was spurred by a softer Consumer Price Index (CPI) May reading than anticipated. According to information from Cointelegraph Markets Pro and Coinbase, SOL's price stands at $159, marking a roughly 5% increase in the past 24 hours, and a 36% rise from its prior low of around $118, observed over five weeks ago.
The smart contract token has registered a solid performance in recent months, escalating more than 88% in the last half-year and 56% since the start of 2021. With a market capitalization of $73 billion, it firmly holds the title of the fifth-largest cryptocurrency by market value.
The surge of Solana on June 12 is happening simultaneously with a price recovery amongst meme coins built on the Solana network. Several of these are recording significant increases. For instance, Dogwifhat (WIF), the top Solana memecoin in terms of market capitalization, has seen a over 12.7% increase in a 24-hour period. Other leading memecoins, Bonk (BONK), Popcat (POPCAT), and Myro (MYRO), have witnessed respective surges of 14%, 12% and 16% during the same timeframe.
The rise of memecoins on Solana correlates with a rise in on-chain activity in the Solana ecosystem, as per data from the Dune Analytics dashboard pump.fun. The rise in SOL's price in particular was heralded by a notable increase in the number of transactions taking place on the network.
The growing presence of memecoins on Solana points to increasing network activity and a wider adoption. High user engagement leads to an uptick in transactions and network usage, ultimately fuelling demand for SOL and pushing its prices upward.
Interestingly, the demand for SOL futures via leverage has remained strong even amidst recent price downturns in the wider crypto market. As per data from Coinglass, SOL's funding rate has seen a rise from 0.0054% to 0.01% per eight hours between June 11 and 12, equivalent to about 0.2% weekly. This increased demand, following a 5% SOL price growth, serves as an indicator of a positive market outlook.
Simultaneously, data from DefiLlama indicates that Solana's total value locked (TVL) jumped to $4.8 billion on June 8. The last instance of Solana achieving such TVL figures was back in early April. Solana's TVL has increased by 13% over the last month.
Layer 2 protocols, such as Jito and Sanctum, have posted double-digit gains in the past month, contributing to the value of the underlying network.
The higher TVL indicates a growing trader interest in Solana’s DeFi ecosystem. Solana continues to draw new users due to its lower transaction costs, especially those in search of new airdrops. As per data from Solscan, Solana's fees have remained reliably low, between $0.0001 and $0.0004, substantially lower than Ethereum's transaction fees.
This article is informative and not intended as investment advice or recommendation. Every investment or trading move carries risk, hence readers should carry out independent research when deciding.
Published At
6/12/2024 10:28:29 PM
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