Solana [SOL] has experienced a significant influx of capital into its network, signaling a surge in the adoption and utilization of the blockchain. This development is encouraging as it demonstrates a growing trust from investors towards Solana.
But will this development have a favorable impact on the token’s value?
Noteworthy Achievement by Solana
Recently, IntoTheBlock shared a tweet highlighting an intriguing development within the Solana ecosystem. According to the tweet, more than $100 million has been transferred from various other chains to Solana in the past week, including a substantial amount of over $70 million from Ethereum.
Given the considerable influx of capital into the network, CryptoCrypto decided to analyze Artemis’ data to delve deeper into the blockchain’s network activity.
Our analysis revealed that following a brief decline, Solana’s daily active addresses have once again begun to increase. Moreover, its daily transactions have remained relatively stable over the past 30 days, underscoring a resurgence in its adoption and usage.
Furthermore, Solana’s presence in the DeFi realm appears promising as its Total Value Locked (TVL) witnessed an uptick last month.
Despite the fresh inflow of capital, there has been a decline in SOL’s captured value performance over the recent days or weeks. This is evidenced by the decrease in its fees, leading to a drop in the blockchain’s revenue.
Implications for SOL
Given the significant developments in the blockchain’s ecosystem, CryptoCrypto proceeded to examine SOL’s condition to ascertain whether these factors were influencing the token’s price movement.
It was observed that bears had taken control of the market sentiment for SOL. The token experienced a decline of more than 7% in price last week, with an additional 3% drop in the past 24 hours alone.
At the time of publication, Solana was being traded at $144.03 and had a market capitalization exceeding $67 billion. The concerning aspect was that while SOL’s price had decreased, its trading volume had surged by over 40%, suggesting a prolonged downward trend in price.
Nevertheless, there was a boost in investor confidence in the token, as reflected by SOL’s weighted sentiment entering the positive territory, indicating a surge in bullish sentiment.