Solana’s native token, Sol (Sol), gained 8.5% on March 24, recovering the $ 142 mark for the first time in two weeks. This rally reflects the gains seen throughout the broader cryptocurrency markets as merchants began to expect reduced risks of an economic collapse. The growing appetite can also be seen in memecoins, which many of which have raw 12% or more since March 23.
Outside of the wide market rally, SOL has its own merits, including an increase in network activity and the direct involvement of US President Donald Trump in Memecoin Market. In addition, growing interest from leading traders in exchanges and increasing the likelihood of a solana exchange-traded fund (ETF) approval of the approval of additional potential for Sol price growth.
Sol/USD (Green) vs. Crypto Market Cap (Orange). Source: TradingView / Cointelegraph
Despite the recent rally, Sol has not changed much of the wider crypto market of 23.7% over the past two months. This weakness was linked to a 93% decline in Solana network fees at the time. The decline was likely to begin with merchants’ failure in the Memecoin sector but gradually affected the entire Decentralized Application (DAPT) market.
Sol is still trading 52% below all time high
Businessmen are now questioning whether the sale is an overreaction, as SOL is currently trading 52% below the full time of $ 295. It arrives across Solana left the second largest blockchain in terms of total amount locked (TVL) and ranked third in OnChain volumes. For comparison, BNB trades 20% below its high time, and the XRP is 28% below its climax.
Blockchains ranked by the total amount locked (TVL), USD. Source: Defillma
While the Tron and BNB chain provides competition in terms of onchain volume, deposits in smart Solana network contracts cost $ 6.8 billion. In the third place, the BNB chain holds 21% less TVL, with $ 5.4 billion. The main highlights in Solana include Jito Liquid staking Solutions, kamino lending and Liquidity platforms, and the Jupiter decentralized exchange.
Solana network fees are now higher than those in the Ethereum base layer, which exceeds $ 1 million per day. More importantly, Solana’s income recently reached its highest level in two weeks. While far from levels seen two months ago, increasing Solana network activity suggests that the bottom can be reached as the numbers continue to improve continuously.
Solana Network sunny fees, USD. Source: Defilllama
In comparison, Ethereum accumulated less than $ 350,000 in fees on March 23, leading to an increase in ETH supply because the built-in combustion mechanism failed to offset the weak blockchain activity. Solana, on the other hand, offers a 7.7% native staking reward rate, which is more than a 5.1% inflation rate, according to stakingRewards data.
Solana ETF’s decision is close as Trump grows Memecoin momentum
Despite Sol’s price weakness, Binance’s leading businessmen have increased their leveraged long (bull) positions to Sol, according to coinglass data.
Binance Top Traders’ Long-to-Short Sol Ratio. Source: Coinglass
The long-to-short ratio among the leading traders in Binance rose 2.40 on March 23, its highest level in two months. Part of the excitement may be attributed to the hope of the area Solana exchange-traded fund (ETF) Approval in the US.
The US Securities and Exchange Commission is expected to issue its final verdict before the end of the year, according to Matthew Sigel, head of Vaneck’s digital asset. Although the success is not guaranteed, the final area of solana ETF approves will set Sol from its competitors, increasing legitimacy to ownership, especially to institutional investors.
Another source of momentum came from a social post on the weekend’s President TrumpThat clearly mentioned Trump’s memecoin and helped create a buzz in the sector. In Solana ecosystems, Fartcoin gained 15%on March 24, rallied by 12%of dogwifhat (wif), and Pudgy Penguins (PENGU) was exchanged by 12%.
Ultimately, SOL has significant potential for higher gains, provided on TVL and network fees, especially in comparison to competitors, including bullish positioning from whales using action.
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.
