Solana Rallies 8% while crypto markets are cured – is there room for more sol reversed?

Solana’s native token, Sol (Sol), rose 8% on March 19 as investors turned to risk assets ahead of Federal Reserve Chair’s statements Jerome Powell. While interest rates are expected to remain unchanged, the analysts expect a softer insight into inflation for 2025. Meanwhile, the basic metrics of onchain and derivatives for Solana suggest further upside down for Sol Price.

The cryptocurrency market reflects intraday movements in the US stock market, suggesting Sol’s acquisitions are not driven by specific industry news, such as reports that the US Securities and Exchange Commission may be I -Drop its lawsuit Against Ripple after clinging to it for four years.

On March 19, Russell 2000 Index Futures, which monitors companies listed in small companies, advanced to their highest levels in twelve days. Despite a broader slowdown in decentralized (DAPP) activity, Solana stood.

Solana’s TVL continues to rise

Solana’s onchain volume dropped by 47% for two weeks, but similar denials were seen throughout Ethereum, Arbitrum, Tron, and Avalanche, which featured trends throughout the industry rather than issues specific to Solana. The total amount of Solana network locked (TVL), a measure of deposits, has hit the highest level since July 2022, supporting Sol’s bullish momentum.

On March 17, Solana’s TVL climbed to 53.2 million sol, marking a 10% increase from last month. By comparison, the BNB Chain’s TVL rose 6% in BNB terms, while Tron’s deposits fell 8% in TRX terms at the same time. Despite the weaker activity in Decentralized application (DAPPS), Solana continues to attract a steady flow of deposits, showing its stability.

Solana saw a powerful momentum, driven bybit staking, which advanced 51% to deposits since February. 17, and drifted, a forever trading platform, with a 36% TVL increase. Restoration The fragmentic also recorded a 65% increase in SOL deposits within 30 days. In the nominal terms, Solana assured the second position on TVL for $ 6.8 billion, leading the $ 5.4 billion of BNB chain.

Despite the collapse of the market, many Solana dapps remain at the top 10 on fees, which are more than larger competitors such as Uniswap and the leading staking solutions of Ethereum.

Solana’s Memecoin Launchpad Pump.Fun, Decentralized Jupiter exchange, automatic Manufacturer of market And the meteora’s liquidity provider, and the staking platform Jito was among the leaders of the fees. More noteworthy, the weekly fees in Solana layer exceed Ethereum’s, holding the leading position with $ 53.3 billion on TVL.

Sol derivatives last while tokens unlocked subside fears

Despite a 27% decline in Sol’s price for 30 days, demand for leveraged positions remains balanced between longs (consumers) and shorts (seller), as indicated by futures funding rate.

High demand periods for bearish bets typically push 8 -oras eternal futures rate of funding to -0.02%, which is equal to 1.8% per month. When the rate becomes negative, the shorts are the payer to maintain their positions. The opposite occurs when merchants are optimistic about Sol’s price, causing the funding rate to increase above 0.02%.

The recent weakness of the price is not enough to plant confidence in the bear, at least the extent of adding leveraged positions. One factor for this can be explained by reduced growth in the SOL supply forward, similar to inflation. A total of 2.72 million SOL will be locked in April, but only 0.79 million is expected for May and June.

Eventually, Sol was well positioned to regain the level of $ 170 last seen on March 3, which was given stability of deposits, the lack of demanding demands from the bear, and the reduced supply increase in the coming months.

This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.