Solana (SOL) has shown a strong performance in 2023 despite interest rate hikes and regulatory pressures affecting the crypto market in the US. With increasing adoption and improving economic conditions, crypto investors are researching whether to buy SOL at its current state.
Solana Coin Chart
Interestingly, investors seem to have staked over 93% of Solana’s circulating tokens. Data provided by StakeRewards on December 2 reveals that 395.88 million SOL has been staked in the protocol.
This stake amount represents 93.33% of Solana’s circulating supply, which is 424.21 million SOL. Additionally, according to StakingRewards, SOL has a market capitalization of $26.43 billion with a staking market value of $24.64 billion.
Solana Coin Reviews
Solana’s Total Locked Value (TVL) from the DeFi ecosystem has increased by 63% in a month and 12.24% in a week. These figures were obtained from DefiLlama on December 2.
This TVL increase has propelled SOL to the top of the list. Particularly, SOL outperformed other chains and took the seventh spot from Avalanche (AVAX) with a locked value of $678.7 million and its utilization in protocols.
The high staking rate and TVL growth may indicate increased interest and demand for SOL in the market. Furthermore, it reflects investors’ willingness to lock their liquidity in the long term and their confidence in the protocol. In line with this, one of the major cryptocurrency exchanges, Coinbase, announced its support for Solana.
The Future of Solana Coin
Another aspect to consider is the potential downturn in Solana. Solana has one of the most inflationary tokenomics among all cryptocurrencies.
The significant supply inflation of the crypto has also affected investors as seen in the price drop after reaching its all-time high (ATH). Additionally, StakingRewards measurement shows a negative real reward rate adjusted for annual inflation for SOL staking.
The daily value of locked tokens in Solana is approximately $5.33 million, which could pose a threat to investors. Lastly, Solana’s impressive price performance in 2023 may incentivize investors to make profits.
