Home Altcoins News Solana’s $674M Surge Signals Potential Bullish Turn

Solana’s $674M Surge Signals Potential Bullish Turn

Solana Surge

Solana (SOL) has recently seen a major influx of investment, with $674 million worth of SOL purchased over the past three weeks. This surge in buying activity has fueled speculation that Solana might be on the cusp of a bullish reversal, despite experiencing a 10.95% drop in price recently. While the recent market trend has been more bearish, multiple indicators suggest that a potential rally could be in the works.

One of the most significant developments is the increase in Solana’s staking activity. Over the past three months, the amount of SOL staked has grown dramatically, from $7.7 million to $62.3 million. Staking allows users to lock their tokens with validators in exchange for rewards, and such a rise in staked tokens signals confidence in the long-term prospects of the asset. Notably, despite the staking yield being relatively low at 11.71%, the surge in staking activity suggests that investors are willing to hold onto their SOL, betting on future price increases. This move is often seen as a bullish signal, as it indicates that traders are positioning themselves for longer-term gains rather than quick profits.

The uptick in staking has been accompanied by an increase in buying pressure. According to Coinglass data, $674.75 million worth of SOL has been bought in the past three weeks, with a significant portion of this being transferred into private wallets. This pattern is a typical sign of long-term accumulation, where investors are locking away their assets in anticipation of a price rebound. This accumulation trend during a price dip demonstrates a sense of optimism, with traders believing that SOL is undervalued at its current levels.

Moreover, the rise in daily active addresses has been another indicator of increasing interest in Solana. Over the last few days, the number of active addresses has grown from 4.4 million to 5.8 million, according to Artemis data. This increase shows that more users are interacting with the Solana blockchain, which could be a sign of growing demand. As the number of active participants in the network rises, it can put upward pressure on the price of SOL, especially when combined with the higher buying activity.

Liquidity in the Solana ecosystem is also on the rise. The Total Value Locked (TVL) in Solana-based decentralized finance (DeFi) protocols has increased from $9.705 billion to $10.22 billion, as reported by DeFiLlama. TVL is a crucial metric because it reflects the amount of value being locked into decentralized applications built on the Solana network. An increase in TVL typically correlates with a positive price outlook, as it indicates growing usage and trust in the Solana ecosystem. As more funds are locked into Solana protocols, the demand for SOL rises, creating a positive feedback loop that can drive the price upward.

Despite these bullish signs, Solana’s price is still at a crucial level. The $674 million worth of SOL bought in the past three weeks suggests that there is market optimism, but the price remains vulnerable. If SOL can continue to hold above its critical support levels and the accumulation trend continues, a breakout could be on the horizon.

The combination of rising staking activity, increased buying momentum, a growing number of active addresses, and increasing TVL suggests that Solana could be preparing for a significant price rally. While the broader market conditions will play a role in determining whether this bullish trend continues, Solana appears to be gathering steam. If these trends persist, SOL may experience substantial upward movement, signaling the start of a new bullish phase for the cryptocurrency.

As more traders buy into Solana and the network sees continued growth, the coming weeks may bring exciting opportunities for the token.

Read more about:
Share on

Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×