Solana’s prowess is not confined to its price performance; recent data reveals its ecosystem maintains a strong market presence. Solana has overtaken Ethereum and BNB Chain in decentralized exchange (DEX) volume, an area traditionally dominated by Ethereum during previous bull markets. This significant shift sees Solana outperforming the blockchain network led by Vitalik Buterin and surpassing another major network as well.
What’s Happening on the Solana Front?
According to DeFiLlama, Solana’s DEX volume in the past 24 hours eclipsed the combined totals of Ethereum and BNB Chain. Although both Ethereum and BNB Chain experienced higher weekly increases, they could not prevent Solana from leading the pack. Specifically, Solana’s DEX volume reached $2.24 billion, compared to BNB Chain’s $703.19 million and Ethereum’s $1.41 billion.
The surge in DEX volume has enabled Solana to capture nearly 36% of the market share. Factors contributing to this rise include staking and the advantages of decentralized applications (dApps) built on the Solana network. A significant boost comes from the increasing trading volumes of memecoins within Solana’s dApps.
Why Is TVL Important?
Throughout this market cycle, memecoin projects on Solana have outperformed other networks, driving demand for SOL and user engagement to various peaks. Total Value Locked (TVL), a metric indicating the value of assets staked in a protocol, has been rising since July 3, reaching $5.29 billion. This uptick suggests market participants view the network as reliable, which could positively impact SOL’s price if the trend continues.
Key Insights
- Solana’s DEX volume surpasses Ethereum and BNB Chain, capturing 36% of the market.
- Memecoin trading volumes significantly contribute to Solana’s rise.
- Solana’s TVL indicates strong network health, currently at $5.29 billion.
- Continued asset locking could keep boosting SOL’s price.
SOL Chart Analysis
Between July 18 and 21, SOL exhibited four consecutive green candles, pushing its price to $185.21. This price hike facilitated a double bottom pattern on the daily chart, a formation typically signaling the end of a downtrend. With a neckline at $180.30, SOL’s price could be poised for further gains.
If the upward trend sustains, SOL’s price might increase by 13.05%, potentially breaching the psychological $200 mark and reaching $204.33. Under highly bullish market conditions, the price could even touch $210.11, levels last seen in March.