Solana DeFi Ecosystem Strengthens: TVL Climbs To Highest Level In Nearly 2 Years
After a prolonged period of reduced activity, the Solana network and ecosystem have regained traction once again with network activities surging to new levels. SOL’s price may be struggling with heightened volatility, but its network has displayed resilience, painting a bullish future for SOL.
TVL On Solana Surges To 22-Month High
The Ethereum network‘s strongest rival and contender, Solana, is gradually claiming the spotlight in the broader DeFi sector as a result of its recent milestone. With the SOL ecosystem surging again, it continues to cement its position as a leading blockchain in the ever-evolving world of cryptocurrencies.
Informative platform IC News stated that the Solana network is experiencing notable growth as its Total Value Locked (TVL) surges despite SOL’s downturn of 9% between March 28 and April 4. The platform stated that SOL’s TVL spiked to its highest level since June 2022, marking a 22-month high.
SOL’s TVL rose by an additional 53.8 million SOL, reflecting an over 14% monthly rise since June 2022. This milestone signifies increased activity throughout the network’s DeFi protocols, robust ecosystem participation, and a fresh wave of investor confidence.
Even with SOL’s price bearish performance, IC News highlighted that the Solana network consistently outperforms other networks like BNB Chain in terms of trading volume and deposits. Presently, SOL’s TVL is valued at $6.5 billion, putting the network ahead of the BNB Chain by over $780 million.
Furthermore, its Decentralized Exchange (DEX) volumes demonstrated remarkable resiliency as Total Value Locked (TVL) reached its highest level since June 2022. The Solana network currently dominates the DEX market share by about 24%, outperforming the BNB Chain and BASE networks, which control 12% and 10% of the DEX market share, respectively.
Should the network growth continue, it could lead to a price recovery for SOL in the upcoming weeks since heightened investor participation and DeFi activities often influence short-term price spikes.
New Make-Or-Break Zone For SOL’s Price
SOL’s network performance may have improved, but its price continues to struggle to regain upward momentum, causing it to revisit key support levels. Technical expert and trader, Ali Martinez, delving into the altcoin’s action, has revealed a new make-or-break zone as volatility intensifies.
Ali Martinez highlighted that the $120 level is a make-or-break zone for SOL, urging investors to observe its next move. This is due to the major trend shifts that have happened at this level in the past.
Data from CoinMarketCap shows that Solana’s price has taken a significant hit, falling below the $100 mark with a nearly 18% drop in the last 24 hours. Despite this sharp decline, investors are demonstrating remarkable confidence, capitalizing on the recent drop as indicated by a more than 257% increase in trading volume in the past day.
Featured image from Unsplash, chart from Tradingview.com
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