Lately, Solana [SOL] has been gaining considerable traction, witnessing continuous growth within its ecosystem. This surge in adoption has propelled the blockchain to achieve new heights across various fronts in recent times.
Therefore, it is crucial to assess the potential impact of these advancements on the token’s price movement.
Significant Achievements by Solana
As per the latest tweet from Solana Floor, the total value of Solana locked in DeFi, which includes liquid staking, has reached an all-time high of 36 million SOL. This milestone marks significant progress for the network, with the locked SOL currently valued at over $5 billion.
Expanding on Solana’s ecosystem growth, it was reported by CryptoCrypto that Coinbase had listed one of Solana’s DePIN tokens – io.net. Furthermore, another tweet highlighted that Solana’s Spot DEX volumes surged to $480 billion year-to-date (YTD) in 2024, surpassing the volumes of 2022 and 2023.
Effects on SOL’s Price
In response to these developments, SOL bulls have taken charge of the market, leading to a price increase of over 3% for the token, which is currently trading at $146.45.
Exploring the potential impact on SOL’s price, CryptoCrypto delved into the token’s current state to determine the outcomes of these milestones. However, it was noted that despite the price rise, the trading volume for SOL has decreased, signaling a potential limitation to the ongoing bullish trend. Additionally, Solana’s weighted sentiment has also dropped, indicating a rise in bearish sentiment surrounding the token.
At the time of writing, SOL’s fear and greed index reflected a state of “greed,” which often precedes a price correction. This observation serves as a cautionary signal for potential investors.
Nevertheless, the positive aspect is highlighted in DeFiLlama’s data showing that SOL’s netflows have turned negative, implying heightened buying pressure. Increased buying pressure typically aligns with bullish market sentiments and often leads to price surges.