Solana, a prominent cryptocurrency, witnessed a notable 15% upswing in its price within a day, peaking at $198 before retreating slightly. This surge came in the wake of a general downturn in the cryptocurrency market towards the end of the week. Market analysts attribute this bullish trend to the proliferation of meme coins and decentralized finance (DeFi) platforms running on the Solana network.
Anniversary Boosts Confidence in Solana’s Network
Celebrating Solana Genesis Day 2024, the Solana team commemorated four years since the inception of its Mainnet Beta which supports developers with smart contract capabilities and decentralized apps. This occasion marked a resurgence of interest in the platform, which has seen its Total Value Locked (TVL) fluctuate following network outages since its first-year milestone of $10 billion in TVL.
Efforts to stabilize and advance the Solana ecosystem have resulted in a significant recovery of its TVL, which plummeted to $1 billion in January but has climbed back over $4 billion. Analytical data suggests that staking and liquid staking on decentralized exchanges drive much of the growth on Solana.
Factors Influencing Solana’s Token Price
The SOL token’s price rally benefits from increased liquidity, thanks to meme coins like dogwifhat, Bonk, and Myro, as well as projects such as Jupiter, Raydium, and Jito. The Book of Meme project is also currently backing Solana.
Despite the recent rise, the SOL token experienced a minor dip after reaching its 24-hour high. Meanwhile, trading volumes have declined by 10%. Analyst Michael van de Poppe warned of a potential significant correction for Solana, drawing on historical data that show a 35% pullback in its price. He suggests that the ideal moment to invest in altcoins during a bull run is after a correction of 20-60%.
Crypto analyst Miles Deutscher disclosed his strategy of buying tokens like SOL during dips. Simultaneously, open positions for Solana transactions have increased significantly in the last day, although there was a slight decrease in the last hour of trading.