Can SOL’s Recent $674M Acquisition Spree in Just 3 Weeks Trigger a Bullish Run?
Solana [SOL] investors faced a challenging week as the cryptocurrency experienced a 10.95% drop, signaling dominance from sellers over buyers.
Nevertheless, current trends suggest that SOL might be entering a bullish phase. Despite a modest 24-hour gain of 0.01% at the time of writing, on-chain data indicates growing bullish momentum.
Remarkable Surge in Staked SOL Over Three Months
Nansen’s data reveals a significant increase in the amount of SOL staked, jumping from $7.7 million to $62.3 million in the last three months.
Staking, a process where traders lock up assets with validators to support the network and earn annual interest, has become popular among SOL holders.
When staking activities surge notably, especially with relatively low yields like the current 11.71% on SOL, it often signals optimism in the market. Traders view staking as a strategic long-term investment method that allows them to earn passive income.
As staked SOL approaches $100 million, buying momentum has also increased, indicating a growing interest among traders to accumulate more SOL.
Rising Buying and Trading Activities
Coinglass data highlights a surge in SOL purchases over the last three weeks.
During this period, approximately $674.75 million worth of SOL was acquired and moved to private wallets for long-term holding. This strategic move reflects market optimism as investors capitalize on lower SOL prices.
Moreover, the number of daily active addresses has recently jumped from 4.4 million to 5.8 million in the last three days, according to Artemis stats.
A surge in buying activity followed by gradual price appreciation indicates a market scenario where buyers surpass sellers, hinting at a potential upward trend.
Steady Increase in Liquidity
The Total Value Locked (TVL), a metric tracking the quantity of SOL moved within various Solana protocols, has shown a consistent uptrend in recent days.
A higher TVL typically has a positive impact on prices, while a decrease tends to have the opposite effect.
DeFiLlama data indicates a rise in TVL from $9.705 billion on February 3rd to the current level of $10.22 billion, suggesting a potential upcoming price surge for SOL.
In general, market sentiment leans towards a bullish outlook for SOL, hinting at a probable major price rally in the forthcoming trading sessions.