The value of Solana has rebounded this month, positioning it as one of the top performers within the cryptocurrency sector. On Saturday, it reached an impressive peak of $180, marking its highest position since early March of this year. Since hitting its low for the year, it has surged nearly 90%. In this piece, we delve into the reasons behind the potential upward momentum of the SOL price, comparing it to a compressed spring poised to launch forward.
Solana-based meme coins are experiencing a resurgence.
The primary reason behind an impending rise in the SOL price is that
Solana meme coins
Official Trump Coin’s value has skyrocketed over the past several days, with a significant increase of 29% in the last week. Meanwhile, Bonk and Fartcoin have also seen notable rises.
Dogwifhat
,
Pudgy Penguins and Popcat have both risen by more than 10%.
The recovery has pushed the total market capitalization of all Solana meme coins to $13.1 billion, up from $6 billion just a few weeks prior. This indicates that these tokens tend to perform strongly whenever there is an uptick in the cryptocurrency market.
The rise of these meme coins contributes to improving Solana’s overall mood, thereby increasing revenue and transaction fees within its ecosystem.
Data shows
The trading volume for decentralized exchange protocols on Solana increased by 7% in the past week, reaching more than $21.7 billion. This brings the 30-day total to approximately $80 billion.
Solana’s network processed more assets than both Ethereum and Binance Smart Chain, with those two handling $51 billion and $35 billion, respectively.
The SOL stablecoin market capitalization is experiencing significant growth.
Stablecoins serve as the primary currency within the cryptocurrency sector because traditional fiat money such as the U.S. dollar and the euro can’t be used directly. Consequently, one key indicator for assessing a digital coin’s expansion is its share of the stablecoin market capitalization.
Solana boasts one of the busiest stablecoin ecosystems, with its market capitalization surging above $12 billion. Although this amount is less than Ethereum’s $215 billion and Tron’s $73 billion, it indicates growth. Likewise, the total value locked within the Solana network has climbed to nearly $10 billion as of today.
Various elements have led to the strong earnings that Solana has generated this year.
shows
Solana has generated $710 million so far this year, ranking it as the third most lucrative network within the cryptocurrency sector following Tether and Tron. This places it above Ethereum, which has earned $616 million.
Rising staked Solana inflows is an observed trend.
Moreover, investors have injected more than 7 million SOL tokens valued at approximately $1 billion into Solana staking pools, pushing the overall staking market capitalization up to nearly $70 billion. As a result of this expansion, the staking ratio now stands at around 65%.
The increasing demand indicates that investors will likewise invest funds into
spot Solana exchange-traded funds
When ETFs receive approval from the SEC, JPMorgan analysts forecast that these funds will see more than $6 billion in inflows during their inaugural year.
One of the main reasons for this influx into the ETF is that the SEC might approve staking within these ETFs, which would make them more attractive compared to current Ethereum funds.
Solana price prediction
SOL price graph | Source:صندitempty
ButtonTitles
Sure, here’s another attempt:
SOL pricing chart | Source:
TradingView
The daily chart indicates that the SOL price has experienced a robust recovery over the last several weeks, climbing from a low of $94 to $180 currently. Solana has surpassed both the 50-day and 100-day Exponential Moving Averages (EMAs).
It has surpassed the 38.2% Fibonacci Retracement level as well. Additionally, both the MACD and RSI indicators continue to climb. Consequently, the cryptocurrency is expected to maintain its upward trajectory with bulls aiming for the 61.8% retracement mark at $220. If this threshold is breached, further increases could be seen, possibly reaching up to $300.
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Solana price forecast: Is SOL like a compressed spring poised to surge forward?
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