Bitcoin’s price recently soared past the $70,000 mark but shortly after experienced a downturn, falling to $67,000 and then further declining to $66,428. This sharp drop followed significant promises made by former President Donald Trump. Meanwhile, Solana‘s (SOL) price remains relatively stable, currently sitting at $186 despite broader market declines.
Why is Solana Bucking the Trend?
Solana has shown resilience where many cryptocurrencies have faltered. Investors attribute this strength to the network’s active meme coin sector and the burgeoning liquid staking ecosystem. The network’s total locked value has surpassed $5 billion, driven by a 40% and 30% increase in protocols like Jito and Marinade, respectively, within a month.
How Does Liquid Staking Impact Solana?
Common in Ethereum, liquid staking has gained traction in Solana’s network too. Users can stake their SOL Coins to receive stablecoins like JitoSOL or mSOL. This practice has seen exponential growth in 2024, with daily and weekly active user numbers rising at a similar pace. As a result, liquid staking is significantly contributing to Solana’s total locked value growth.
Implications for Investors
- Monitor Solana’s liquid staking protocols like Jito and Marinade for investment opportunities.
- Keep an eye on Solana’s locked value metrics as an indicator of the network’s health.
- Investors should consider the stability SOL is showing amidst market declines.
- For trading strategies, analyze Solana’s performance relative to broader market movements.
Despite the downturn in Bitcoin’s value, Solana demonstrates considerable strength and a promising future due to its dynamic ecosystem. If Solana’s price can hold above $180, the potential exists for it to reach new highs. Popular options trader Wick remains optimistic, suggesting that SOL could lead the next market rally.