Solana’s （SOL） price has surged, nearing its yearly high after a 27% gain in July. The network’s robust liquid staking ecosystem and memecoin euphoria have contributed to this rise.
Points
- Solana’s total value locked （TVL） jumped 10% to $5.42 billion.
- Liquid staking projects Jito and Marinade lead the growth with significant TVL increases.
- SOL price shows bullish momentum with potential to retest yearly highs.
Solana （SOL） is experiencing a significant price surge, nearing its yearly high after a 27% gain in July. While much of the community attributes this success to Solana’s memecoin euphoria, the network’s robust liquid staking ecosystem is emerging as a strong on-chain narrative.
SOL/USD daily chart. Source: Trading View
Liquid Staking Tokens Are Leading Solana DeFi
Cointelegraph recently highlighted Solana’s total value locked （TVL） jumped 10%, reaching $5.42 billion. This increase in TVL has led to a rise in transaction volume and on-chain activity. Liquid staking projects Jito and Marinade were the leading protocols, registering a TVL rise of 40% and 30%, respectively, over the past month.
Solana protocol rankings. Source: DefiLlama
Liquid staking is a process that combines the benefits of staking and liquidity. Holders can stake their tokens in a smart contract or staking pool and receive a token representing their staked SOL. This token, referred to as a liquid staking token （LST）, can be used to derive yields on other protocols or utilized in decentralized finance applications. For Jito and Marinade, these tokens are JitoSOL and mSOL, respectively.
Total staked LST chart. Source: Dune Analytics
Will SOL Reach a New Yearly High This Week?
SOL’s price action shows bullish momentum, and the community expects the price to retest its yearly high at $210. At the time of publication, SOL had breached a bullish double-bottom pattern, with current overhead resistance at $202.
The overhead resistance is relatively weak, and there is a high probability of a yearly high retest. However, Solana is currently witnessing a correction, falling below the $190 mark.
If Solana continues to follow a bullish trend, its immediate retest target remains in the $200- $210 range. Conversely, if it loses its immediate support zone at $180, the altcoin may retest its previous swing low price at $165.
SOL/USD daily chart. Source: TradingView
解説
- Solana’s recent price surge and strong performance in the liquid staking ecosystem highlight its potential for continued growth and adoption.
- The rise in TVL and transaction volume indicates increased investor confidence and engagement with Solana’s DeFi projects.
- The bullish price action and potential retest of yearly highs suggest that Solana remains a strong contender in the cryptocurrency market.
- Investors should monitor key support and resistance levels to make informed decisions and capitalize on Solana’s price movements.
- The development of liquid staking and other DeFi applications on Solana could further drive its value and utility in the blockchain ecosystem.