Published on augustus 24, 2024, 12:27 am
Image source: Fox News
```json [ "TLDR: The surge in total value locked (TVL) on Solana signals potential for SOL price to reach new highs, despite obstacles like regulatory uncertainties. Strong network metrics and promising developments like PayPal USD issuance contribute to Solana's growth. While TVL growth is positive, user engagement levels, not just TVL figures, will be crucial for sustaining long-term price rallies above $190." ] ```
The total value locked on Solana has seen a significant surge recently, raising questions about whether this momentum will propel the price of SOL to new all-time highs. Solana’s native token, SOL, has faced resistance at the $150 mark but has been backed by strong network metrics, particularly evident in the increased deposits within its decentralized applications—reaching levels not seen since October 2022.
Despite these promising developments, obstacles remain that could be dampening investor sentiment. Cboe Global Markets’ removal of the 19b-4 forms for Solana spot exchange-traded funds (ETFs) has raised concerns among market participants. Speculations regarding the United States Securities and Exchange Commission’s stance on a potential Solana ETF approval under Chair Gary Gensler have further added to the uncertainty.
Analysts like Eric Balchunas of Bloomberg share pessimism about ETF approval chances unless there are significant changes within the SEC administration. This regulatory uncertainty has somewhat eclipsed the positive impact of Solana’s network performance on SOL’s price trajectory.
Moreover, amidst growing competition from other blockchains and declining Ethereum fees, Solana is urged to redefine its narrative and explore new avenues for growth. While some suggest that finding innovative DApps could be key to improving SOL’s outlook, noteworthy achievements like PayPal USD issuance on Solana exceeding $600 million in less than three months show underlying strength.
Projects like Colosseum and Decentralized Autonomous Wireless Network (DAWN) securing substantial funding underscore investor interest in Solana’s ecosystem expansion efforts. Notably, recent data revealed a surge in total value locked (TVL) on Solana indicating room for further price appreciation potential for SOL.
Despite TVL growth being a positive indicator, it may not directly correlate with user activity as observed in some DApps facing user number declines while TVL rises. Gauging user numbers through active addresses remains crucial in assessing real user engagement with the platform.
While Solana continues to witness promising developments and growth in TVL surpassing competitors like BNB Chain, sustaining long-term price rallies above $190 might hinge more on user engagement levels rather than just TVL figures alone. The evolving landscape of cryptocurrencies further emphasizes the importance of adaptability and innovation for projects like Solana looking to maintain their competitive edge amid changing market dynamics.
Original article posted by Fox News
