Solana (SOL) has demonstrated strong performance in the US crypto market in 2023, despite increasing interest rates and regulatory pressures. Crypto investors are evaluating the current status of SOL amidst growing adoption and improving economic conditions.
Investors have staked over 93% of Solana’s circulating tokens. According to data provided by StakeRewards on December 2nd, a total of 395.88 million SOL has been staked on the protocol. This represents 93.33% of Solana’s total circulating supply.
Solana’s Total Value Locked (TVL) has increased by 63% in one month and 12.24% in one week through the DeFi ecosystem. This growth has propelled SOL to the top rankings, surpassing Avalanche (AVAX) and securing the seventh position.
The high staking rate and TVL growth indicate increased interest and demand for SOL. Furthermore, it reflects investors’ confidence in locking their liquidity in the long term. In this context, major cryptocurrency exchange Coinbase has announced its support for Solana.
The potential downsides of Solana should also be considered. Solana has one of the highest inflation rates among all cryptocurrencies. This inflation can be observed with a negative real reward rate adjusted for annual inflation for SOL staking. The impressive price performance of Solana in 2023 may incentivize investors to profit.