Originally published on: October 11, 2024
Solana’s price has surged to $145.20 on October 11, marking a 5% increase in the last 24 hours. After facing losses for two consecutive days, SOL is now trading above $144, driven by a renewed momentum within the cryptocurrency market and positive developments in the Solana ecosystem.
The recent uptick in SOL price can be attributed to various factors that are contributing to the coin’s rally. One significant driver is the increase in user engagement with the network, particularly through activities such as liquid staking. This trend challenges the misconception that Solana is solely focused on meme coins.
Data from Dune reveals that the Total Value Locked (TVL) for liquid staking on Solana has surged from $3.2 billion to $5.2 billion since August 5, representing more than 7% of SOL’s market capitalization and hitting an all-time high. Leading the ecosystem in liquid staking protocol is JITO, with $1.88 billion TVL, followed by Marinade and Jupiter.
While meme coins still dominate the network activity, with a notable spike in transactions on the Solana blockchain in recent days, the increase in overall on-chain transactions signifies growing adoption and network activity. This uptrend in user interaction boosts demand for SOL and positively impacts its price.
Moreover, the surge in SOL price on October 11 coincided with a rise in liquidations in the altcoin’s derivatives market. Approximately $3.2 million in SOL short positions were liquidated, with ongoing liquidations adding to the tally. CoinGlass data also indicates that an additional $113.3 million in liquidations may occur if SOL reaches $150.
It’s important to note that this article does not offer investment advice. Investors should conduct their research and due diligence before making any financial decisions. To stay informed about market insights and trading strategies, subscribe to the Markets Outlook newsletter for weekly updates.
