Solana DeFi Growing, Daily Users Approaching 7 Million: Will SOL Crack $200?

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As a seasoned researcher with a knack for deciphering market trends and patterns, I find myself intrigued by Solana’s current position. Despite its impressive market cap and growing ecosystem, SOL has been struggling to keep pace with other cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.

Solana ranks among the leading blockchain networks, with a total market value exceeding $81 billion, based on information from CoinMarketCap. Despite an upward trend in cryptocurrency prices and a generally optimistic mood, SOL has been lagging behind in gaining traction.

Solana Retraces: Will Prices Break $200?

For the last seven days, market analysis indicates that Solana (SOL) has been relatively steady, experiencing a minor decrease of about 3% in the past day. This decline occurs while Bitcoin, Ethereum, and Dogecoin are climbing upward.

For a clearer understanding, let’s consider the context: Over the past seven days, Dogecoin has experienced a 22% increase. In comparison, Bitcoin saw an 8% growth within the same timeframe, approaching its peak levels from March.

With Solana’s token price (SOL) dipping slightly from this week’s peak of around $185, experts at CoinMarketCap observe that Solana’s ecosystem is expanding. Simultaneously, the count of daily active users keeps rising, a sign of growing interest.

Over the last seven days, there’s been a strong upward trajectory for the market. Following a sudden drop in early September that was swiftly followed by a recovery, this uptrend has resulted in SOL experiencing significant growth. The coin has gained around 50% over the past two months and surpassed $150, breaking through that level.

In simpler terms, the digital currency SOL is currently within an uptrend pattern, or a “bullish breakout formation,” at its current spot rates. If there’s a temporary dip, the price could drop to approximately $150, which might act as a support level. If buyers manage to hold this level, it could potentially mark the start of another upward movement, potentially reaching the significant milestone of $200.

Solana Price Drivers: Thriving Ecosystem, Institutional Support

Potential factors fueling expansion could be the thriving Solana network community. Notably, weekly active users soared to approximately 6.9 million last week. Nevertheless, with recent price adjustments, the current figure has dipped slightly to about 5.5 million.

A significant number of our platform’s users are actively trading popular meme coins on top-tier decentralized platforms such as Raydium and Jupiter.

In recent months since Pump.fun’s debut in January, SOL has been positively impacted by numerous new meme coin launches. Each launch necessitates the locking up of SOL for liquidity, which boosts demand and pushes prices upward.

Meme coins play a significant role in Solana’s development, but it also boasts a robust DeFi landscape. According to DeFiLlama, its protocols collectively manage more than $6.2 billion, with over half being stablecoins. Out of the $3.80 billion worth of stablecoins on Solana, approximately 69% are USDC.

Leading DeFi applications encompass Jito, a liquidity staking system overseeing approximately $2.4 billion, as well as Solayer – a liquidity re-staking solution – and Ondo Finance – a platform for tokenizing real-world assets (RWA) worth $275 million and $127 million respectively.

As Solana experiences rapid expansion on its blockchain, it might gain an advantage with institutional support. Notably, the trading platform Robinhood has started providing SOL to its European users.

Simultaneously, VanEck – a company known for issuing Bitcoin and Ethereum ETFs – introduced the first exchange-traded note (ETN) available in Europe. This ETN comes with the added benefit of staking rewards.

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2024-11-01 12:42