Published on september 24, 2024, 12:25 am
Image source: Fox News
```json [ { "TLDR": "Solana (SOL) saw a price surge to $152 but faced resistance and dropped to $143. Speculation arises on the impact of its Total Value Locked (TVL) dip on price, possibly retesting $120 support. Despite TVL outflows, other metrics suggest ongoing network activity. Solana's DApps TVL declined by 8.5%, affecting platforms like Jito and Kamino. Positive signs in decentralized exchange volumes while Ethereum’s Curve Finance remained stable. Monitoring active addresses is crucial for assessing user engagement levels. Although SOL lags behind Ethereum in TVL growth rate, recent data shows resilience with increasing DEX volumes and active addresses, suggesting potential price stability around current levels." } ] ```
Solana (SOL) recently experienced a price surge to $152, only to face resistance at the $152 level, leading to a slight pullback to its current price of $143. Investors are now speculating whether the dip in Solana’s Total Value Locked (TVL) within its network could have a negative impact on the altcoin’s price, potentially causing a retest of the $120 support level.
The increase in SOL’s price followed a broader rally in the altcoin market driven by macroeconomic factors like the US Federal Reserve’s decision to reduce interest rates. While SOL’s recent drop to $143 surpassed the overall correction in the altcoin market, some attribute this tepid response to outflows from the Solana network, as indicated by TVL data. Despite these outflows, other metrics suggest ongoing activity within the ecosystem that may help offset these withdrawals.
According to data, Solana’s decentralized applications (DApps) TVL decreased by 8.5% between Sept. 18 and Sept 21. This decline affected major platforms such as Jito, Kamino, and Jupiter after experiencing significant inflows in August. However, when compared to other blockchains like Ethereum and Avalanche, Solana showcased a relatively less concerning decline.
Positive signs were observed in Solana’s decentralized exchange volumes with increases seen in Orca, Raydium, and Phoenix. On the contrary, Ethereum’s prominent DEX Curve Finance remained steady while Tron’s SUN experienced a drop in trading volume.
Analyzing network activity solely based on deposits and volumes might not provide a comprehensive picture as certain DApps do not require substantial deposits. Consequently, tracking active addresses becomes crucial in assessing user engagement levels within an ecosystem.
Despite Solana trailing behind Ethereum in TVL growth rate due to its low fees relative to transaction costs incurred by validators; recent data suggests that investors need not be overly worried. The growth in DEX volumes and active addresses emphasizes ongoing engagement within Solana despite fluctuations in TVL.
In conclusion, while fluctuations occur within cryptocurrency ecosystems like Solana’s network leading to questions about potential price impacts; current trends indicate resilience and continued activity within the network that may mitigate concerns of a significant correction towards $120. It is important for investors to consider multiple indicators beyond TVL when evaluating investment decisions related to cryptocurrencies like SOL.
Note: This article serves general informational purposes only and should not be considered as legal or investment advice. The opinions expressed are solely those of the author and do not necessarily represent those of any specific entity mentioned above.
Original article posted by Fox News
