Originally published on: October 11, 2024
On Oct. 11, Solana’s SOL price jumped above $144, marking a 5% increase in the last 24 hours. This surge not only recaptured recent losses but also aligned with a broader cryptocurrency market rally and enhanced fundamentals within the Solana ecosystem.
Factors driving the upsurge in SOL price include an increase in user engagement with the network, particularly through activities like liquid staking. Contrary to the belief that the Solana blockchain is solely focused on memecoins, the total value locked (TVL) for liquid staking on Solana has skyrocketed from $3.2 billion to $5.2 billion, accounting for over 7% of SOL’s market capitalization.
JITO, the leading liquid staking protocol on Solana, holds $1.88 billion of TVL, followed by Marinade with $742.3 million and Jupiter with $477 million. This diversification in user activity signals Solana’s capability to attract a wide range of applications beyond memecoins.
Although memecoins still dominate chain activity, with Pump.fun data showing a surge in transactions, the spike in on-chain transactions on Solana indicates a surge in network activity and adoption. This increased user interaction drives demand for SOL, positively influencing its price.
Additionally, an uptick in liquidations in the altcoin’s derivatives market was observed following the price rally. Approximately $3.2 million in SOL short positions were liquidated on Oct. 11, with ongoing liquidations. CoinGlass data suggests that further liquidations amounting to $113.3 million could occur if SOL surpasses $150.
This article serves as informative content and does not provide investment advice. Readers are encouraged to carry out their research before making any investment decisions.
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