The Total Value Locked (TVL) of Solana is steadily on the rise, with projections indicating a surge to $18 billion in the near future. Keeping abreast of the developments surrounding this impressive growth is crucial for investors and enthusiasts alike.
Impending Surge in TVL Driven by Liquid Staking Tokens
Solana’s [SOL] Total Value Locked is witnessing a consistent upward trajectory, with predictions suggesting a substantial increase. A tweet from a respected analyst has hinted at the possibility of the liquid staking token market expanding by fivefold, consequently propelling Solana’s TVL to $18 billion.
The emergence of new liquid staking tokens by platforms such as Binance, Bybit, and Bitget is anticipated to further hasten this growth.
With the escalating TVL, Solana is positioning itself as a more secure and appealing option for market participants. This surge in locked value could potentially inject more liquidity into the network, thus amplifying DeFi activities.
Source: DeFiLlama
Whale Activity Influencing Liquidity Pools
Adding to the upsurge in TVL, the activity of large holders or “whales” continues to have a notable impact on Solana’s market dynamics. Notably, data from Coinglass’s liquidation heatmap has revealed a significant $10 million liquidity pool at the $138 price level.
This observation indicates a bullish sentiment as whales aim to safeguard this particular price range.
Source: Coinglass
With assets increasingly being locked into various protocols, there is a likelihood that price stability or further appreciation may be witnessed. The behavior of whales is increasingly being seen as pivotal in deciphering the future movements of Solana’s market.
Bullish Signals from Solana Exchange Outflows
The outflow of assets from exchanges serves as a positive indication, suggesting that investors are inclined to hold onto SOL rather than engage in selling activities. This trend of more SOL being staked in protocols is resulting in reduced liquidity on exchanges, thereby hinting at potential price hikes in response to heightened demand.
With the growth in TVL complemented by diminishing exchange outflows, a bullish outlook is reinforced, driving up the value of SOL.
Source: Coinglass
Recent data from the stochastic RSI points towards a bullish crossover, indicative of an imminent upward trend for Solana.
Furthermore, robust support is observed at the price range of $135-$138, reflecting the influence of liquidity pools shaped by whale activity.
The expanding TVL of Solana, fueled by liquid staking initiatives and whale engagement, bodes well for its prospective performance. As exchange outflows alleviate selling pressure, SOL stands poised to witness substantial gains in the short term.