It’s $1.8!
Solana Price Surpasses $100 Milestone, TVL Growth Suggests More Upside Potential
On February 8th, the price of Solana (SOL) broke above the significant $100 milestone, indicating the potential for further gains based on recent growth trends in Solana Total Value Locked (TVL).
Solana has experienced significant growth within its DeFi ecosystem over the past week, which even led to a brief network outage. Analysis of on-chain data suggests that this rapid capital inflow and rising network participation rate could drive SOL prices higher in the coming days.
After a period of controversy and volatility, SOL prices ended January on a strong note, surging 35% from $79 to $105 between January 23rd and January 31st, thanks to increased DeFi activity.
The negative sentiment arose when the Solana blockchain network suffered a five-hour outage on February 6th. However, rather than panic selling, bullish SOL holders held their positions, and on February 8th, the price of SOL made another significant jump, reaching $105.
Data trends on the blockchain show that the 33.6% price rally over the past 16 trading days can be attributed to the influx of millions of dollars into Solana’s DeFi ecosystem.
Furthermore, on February 8th, the TVL within Solana’s DeFi ecosystem surpassed $1.8 billion for the first time since June 2022. According to DefiLlama data, it has grown by $500 million in the past 16 days, dating back to January 23rd.
This milestone is a result of projects built on Solana’s layer-1 network, which have successfully attracted investor attention in recent weeks.
While the Jupiter (JUP) decentralized exchange airdrop has gained significant media attention, Jito, Kamino, and Blazestake have received the highest capital inflows over the past month.
When a layer-1 blockchain network experiences an increase in TVL, as is currently observed on Solana, it indicates growing investor interest in its native projects.
As users of these projects carry out various network transactions, such as liquidity staking, lending, and DEX trading, the demand for the native SOL token increases, ultimately driving up its price.
Based on the analyzed data trends, the organic $500 million increase in TVL has played a crucial role in driving SOL’s 33.6% price rally between January 23rd and February 8th.
With TVL continuing to trend upward, SOL could potentially see further price gains, with a possible retest of the coveted $120 territory in the near future.
In terms of key resistance points to monitor, the upper Bollinger band technical indicator suggests that bears may create a sell-wall around the previous local top at $105. However, if the bulls can decisively break through this area, a bold move toward the $120 territory becomes possible.
Conversely, the bears could invalidate this optimistic price prediction if they push the price below $80. However, this scenario seems unlikely, as the lower Bollinger band indicator indicates a potential support buy-wall at $83.
If the bulls can hold this support level, it could trigger another rebound phase.
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