Solana (SOL) continues to capture the attention of institutional investors, experiencing significant gains over the past 48 hours. This recent uptick has led to optimistic predictions that SOL may soon embark on an upward trajectory. A shift in market sentiment might be the catalyst for this potential rise. Previously, Solana achieved an all-time high of $260 on November 6, 2021. Currently, SOL is priced 38% below its peak, at approximately $158.2, following recent price movements that saw it briefly surpass $164 before a correction.
Will Solana Maintain Its Momentum?
SOL’s track record of outperforming the market during recovery phases has garnered attention. Institutional investments and increased on-chain activities have contributed to an upward momentum. In the past 24 hours, Solana’s market cap soared to $71.3 billion, following a 4% rise, positioning it just behind BNB.
Solana’s 24-hour daily trading volume surged by 31% to $3.9 billion, and its weekly price rose by 5%. These metrics highlight the sustained interest and activity surrounding SOL.
The upward trend in Solana’s price over the past year has also resulted in a notable 15% monthly price increase. Consequently, the total locked value (TVL) on SOL’s DeFi platforms reached $4.42 billion after a 7.83% rise, with the volume exceeding $1.2 billion.
A Look at Solana Meme Coins
Leading protocols on the Solana network, such as Jito, Marinade, and Kamino, maintain TVLs above $1 billion. Experts suggest that Solana gained market traction through NFTs in 2021 and meme coins in 2024.
Despite the absence of interest rate changes, SOL’s current price outlook remains distant from its all-time high. Proponents of Solana’s growth point to the meme coin phenomenon and anticipated Federal Reserve rate cuts as potential triggers for SOL to reach a new resistance level.
Key Takeaways for Investors
• Institutional investments are significantly boosting Solana’s market cap and price.
• Solana’s DeFi platforms are seeing increased total locked value, signaling robust network activity.
• The entry of new tokens in the market is fueling the growth of Solana meme coins.
• Market participants should be cautious, as meme coins carry high risks despite potential gains.
The recent surge in Solana’s price and activity indicates a strong interest from institutional investors, potentially driving further gains in the near future. Investors should stay informed and consider the inherent risks when navigating the volatile cryptocurrency market.