Solana (SOL), a major Ethereum competitor, is striving to surpass the $100 mark again amidst a weekend of generally weak altcoin volumes. Despite the overall market softness, SOL has rebounded with a 7% gain to $99.6. The recovery follows months of institutional demand and significant gains linked to GSOL, especially after fully recovering from the FTX crash.
GSOL, reaching its peak in November, created a leverage effect for investors, leading to substantial demand in the spot market. However, the inflow to SOL funds has slowed, with interest shifting towards spot BTC ETFs and the speculative relationship between GSOL and spot prices becoming more pronounced.
Despite the slowdown, the positive market sentiment suggests that Solana’s Total Value Locked (TVL) could reach new heights in 2024, contingent on ETH’s price surpassing $3,500 and breaking BTC’s market dominance, thereby creating space for altcoins.
The Solana ecosystem’s recovery is evident not just in price but also in its overall growth, with TVL rising from $300 million levels. The network’s supporters, like BONK and JTO, have contributed to this success, and future airdrops may attract even more users.
SOL’s price appears to be recovering along an upward trend line, aiming to turn the $97.67 resistance into support and potentially reaching $112. However, with US markets closed for a holiday and the upcoming Fed meeting, the short-term outlook remains uncertain, despite a year-end target of $200.