Ethereum Unveils Groundbreaking Developments
Solana TVL Surpasses $2 Billion for the First Time in 2 Years, Ethereum Funds Flowing in through Wormhole Bridge Point to Potential SOL Price Gains
In a significant development, on February 20, Solana TVL reached a milestone by surpassing $2 billion for the first time in two years. Moreover, the funds flowing into Solana from Ethereum via the Wormhole bridge indicate the possibility of further price gains for SOL.
After reaching a new peak of $118.40 on February 15, the price of SOL has lost momentum. However, on-chain data reveals that funds are trickling down to Solana from the Ethereum network this week, which could potentially spark a rebound in SOL’s price, pushing it towards the $150 mark.
Solana’s price experienced a dip of 12%, falling below the market average. In the first half of February 2024, Solana was leading the crypto market rally, with a 26.8% surge in SOL’s price and the addition of nearly $11 billion to its market capitalization. However, the market trend shifted on February 15 as investors began to take profits once the price of SOL reached its peak for 2024.
Currently, on February 21, Solana is trading at $103, which is down 12% from its peak on February 15. In contrast, the total altcoin market has grown by 5% during the same period. The negative price performance of Solana seems to be driven by insiders and existing holders booking profits rather than macro factors.
Despite some traders cashing out their SOL holdings, the Solana network has made significant progress this week, which could potentially trigger an early price rebound. Over the past week, Solana has received substantial inflows from Ethereum as investors increasingly turn to Solana for its more efficient and cost-effective decentralized finance (defi) services.
According to on-chain data from the Wormhole bridge Explorer, investors transferred funds worth over $24.6 million from Ethereum to Solana between February 14 and February 21. This indicates that Solana’s high throughput and low transaction costs have made it attractive among developers and defi users. The increasing flow of funds into Solana-hosted decentralized applications (dApps) is a positive sign of its growing adoption and utility.
Despite the 12% decline in Solana’s price over the last seven days, the fact that investors are still transferring funds worth millions into the Solana ecosystem highlights a clear divergence between short-term price movements and long-term investor sentiment.
Furthermore, the recent influx of funds has pushed the Total Value Locked (TVL) on the Solana network above the $2 billion milestone for the first time since June 2022. This further confirms that the current pullback in SOL’s price is not due to any noticeable deterioration in Solana’s fundamental network growth metrics.
If these trends continue, the increasing demand for Solana’s defi services could eventually translate into market demand for native SOL tokens, leading to a bullish price reversal towards the $150 range in the coming weeks. Stay updated by following us on Google News.
