Solana price experienced a 15% increase within 24 hours and a 31% increase over the week, reaching $198 before slightly retracting. Despite broad crypto sell-offs on Thursday and Friday, Solana led the market with strong upward momentum. Analysts investigating the basis of the rally pointed to meme coins and decentralized exchanges hosted on Solana-based projects.
Solana Rises on Genesis Day
The official Solana account shared a post marking “Solana Genesis Day 2024”. Genesis Day reflects the last four years of data since the launch of Solana’s Mainnet Beta, focused on supporting smart contracts and decentralized applications.
Solana’s Total Value Locked (TVL) moved above $10 billion after the first year of its launch in November 2021. However, a series of subsequent outages led to a decline in this value due to insecurity.
Subsequent support in the Solana ecosystem paved the way for the TVL to recover from $1 billion in January to surpass $4 billion again today. According to data provided by DefiLlama, growth on Solana is primarily through staking, liquid staking, and decentralized exchanges.
On the other hand, the SOL price rally was initially supported by high liquidity created by interest in meme coins such as dogwifhat (WIF), Bonk, Myro. Additionally, Solana projects like Jupiter, Raydium, and Jito also contributed. Today, Book of Meme (BOME) supports Solana.
Will SOL Price Continue to Rise?
SOL price surged over 15% in the last 24 hours to $198 but then pulled back slightly. The lowest and highest prices in the 24-hour period were $166.72 and $198.92, respectively. However, trading volume decreased by 10% in the last 24 hours.
Popular analyst Michael van de Poppe highlighted the potential for a significant drop in Solana. He noted that SOL price had previously experienced a 35% correction over a higher time frame compared to the BTC/USDT pair. He advised investors that the best entry point in altcoins during a bull market is generally after a 20-60% correction.
Meanwhile, crypto analyst and DeFi expert Miles Deutscher revealed tokens he purchased during past dips, including SOL, SEI, NEAR, FTM, SUI.
While all this was happening, open positions for Solana transactions saw an increase of about 15% in the last 24 hours and 4% in the last 4 hours. However, there was a nearly 2% drop in the last hour.
