As a seasoned analyst with years of experience in the cryptocurrency market, I’ve seen my fair share of price fluctuations and trends. Today, I find myself optimistic about Solana (SOL), as it’s currently trading above $144, up 5% over the last 24 hours, recovering from recent losses.
On October 11, Solana’s (SOL) price is climbing, currently trading at more than $144, marking a 5% increase in the past day. This surge has helped Solana recover from the losses it experienced over the previous two days.
The upward momentum aligns with a broader cryptocurrency market rally and improving fundamentals within the Solana ecosystem.
Let’s look at the factors driving SOL price up today.
Solana liquid staking hits all-time high
On October 11, SOL‘s price surge can be attributed to a rise in user interaction with the network, demonstrated by actions like liquid staking. This activity contradicts the belief that the Solana blockchain is primarily associated with meme tokens.
Based on Dune’s findings, the value locked in liquid staking on Solana has been rapidly increasing since August 5th, with a significant jump from $3.2 billion to $5.2 billion on October 10th. This amount now makes up over 7% of Solana’s total market cap, setting a new record high.
In terms of dominance within the system, the liquid staking protocol known as JITO holds the largest portion, accounting for approximately 45.2%, or $1.88 billion, of the total value locked (TVL). Coming in second is Marinade with a share of around 17.8%, or $742.3 million, and Jupiter trailing behind with a 11.5% share, which equates to $477 million.
This is an indication that Solana is capable of attracting users with different use cases besides memecoins.
Nevertheless, it’s memecoins that dominate the activity across the network, as evidenced by data from Pump.fun, a memecoin generator for Solana. This data indicates a significant rise in transaction deployment over the recent days.
On October 8, daily transactions on the Solana blockchain were 13,351. By October 10, this number had risen to 14,495. In other words, there was a significant increase in daily transactions on the Solana blockchain from October 8 to October 10.
An increase in on-chain transactions on the Solana network suggests a surge in network activity and expanding popularity. As more users engage with the platform, there’s an uptick in transactions and overall usage, which boosts demand for SOL and potentially raises its value.
Futures liquidations back SOL’s recovery
On October 11, a surge in SOL‘s price was mirrored by an increase in liquidations within its derivatives market.
As per CoinGlass’s data, around $3.2 million worth of SOL short positions were forced to close on October 11th, and this number was still rising at the time of publication. Over the past 12 hours, a total of $58 million in leveraged crypto positions have been terminated, with $50 million being short positions.
According to additional information from CoinGlass, it’s estimated that an additional $113.3 million worth of positions could be forced out if the price of SOL reaches $150.
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2024-10-13 19:38