Solana’s DeFi sector has been doing well, and DEXes have been performing exceptionally well. The total value locked (TVL) on Solana’s perpetual DEXes (Perp DEXes) has hit a new record of $8. 2 million SOL.
This major development points to the rising utilization of Solana’s DeFi offerings. It is a positive sign of the network’s future. With the increase in DEX activity, Solana’s price also increases. This makes the platform one of the biggest competitors in the blockchain and cryptocurrency industry.
TVL on Perp DEXes Hits New All-Time High
The Perp DEXes on Solana are growing very fast, and the total value locked in these platforms is increasing exponentially. When writing this, in August of 2024, the TVL was at 8.2 million SOL, which is almost four times more than the initial 2.3 million SOL noted in January. This sharp rise is mainly due to the expansion of the major players in the sector, which include Jupiter Perps, Drift Protocol, and Flash Trade, which are still growing in user base and liquidity.
The chart below shows a clear growth trend in Solana’s DeFi space, particularly within the DEX ecosystem. During the period of Dec 2023 to Aug 2024, the TVL was on the rise, indicating more and more investors trusting decentralized trading platforms. Drift Protocol, for instance, has been at the forefront of this growth and has taken a lion’s market share. The services provided by these Perp DEXes, like leveraged trading and perpetual contracts, have made them popular to the extent that they help users trade large volumes without using centralized exchanges.
This is another testament to Solana’s growing dominance as one of the prime networks for decentralized finance. With more traders and liquidity providers entering these Perp DEXes, this ecosystem can expand and dethrone other networks regarding DeFi activity and TVL. As the network has a robust infrastructure with high TPS and low fees, more and more users are interested in the efficient decentralized solutions provided by Solana.
Solana Price Gains Momentum
In addition to the impressive growth in TVL, Solana’s price has shown positive movement over the last 24 hours. It has risen by approximately 2%. As of the most recent data, Solana is trading at $134.95, up from its earlier low of $131.92. This increase brings Solana’s market capitalization to over $63 billion, placing it firmly in the top five cryptocurrencies by market cap. With a 24-hour trading volume exceeding $1.9 billion, Solana’s performance reflects strong investor confidence.
Solana’s price movements have mirrored the growing activity on its network, particularly in the DeFi and NFT spaces. The surge in the use of Perp DEXes has likely contributed to this price increase, as more liquidity is locked into the ecosystem. Furthermore, the increasing adoption of decentralized applications (dApps) and other projects building on Solana has provided additional support to the network’s value.
The chart tracking Solana’s price over the past day illustrates a sharp recovery after a brief dip to $131.92. The price has since rebounded, indicating strong support at this level. The bullish sentiment surrounding Solana continues to grow as traders and analysts expect further price appreciation, driven by the expanding ecosystem and increased adoption of decentralized trading platforms.
Technical Analysis of Solana’s Price Action
Solana’s price action over the past few days has shown resilience, with the cryptocurrency rebounding strongly from minor pullbacks. After briefly touching $131.92, Solana’s price has surged back to $134.95, demonstrating a positive trend. The steady price rise reflects strong market sentiment fueled by increased activity in DeFi, particularly within the Perp DEX space.
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Technical indicators suggest that Solana’s upward momentum may continue in the near term. The price is stuck at a support level just below $135, with a break above this level opening the door for more gains. Experts still hope Solana will continue the upward movement as more DeFi projects are added to the Solana network.
Therefore, regarding support, the recent low has been at $131.92. Therefore, this level could be considered a critical level to observe. If Solana retracts to this level, the bulls will likely come back into the picture to scoop any short-term selling pressure. Still, the overall outlook is positive, and the rising TVL on Perp DEXes ensures that the prices can only go up from here.
