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- Solana’s network activity remains strong, with record-high transactions and a peak TVL of 55.37 million SOL despite bearish market trends.
- SOL’s price dipped but showed signs of stabilization, while derivatives and spot market trends hint at a potential recovery.
Despite a general market slowdown and bearish trends, the Solana blockchain has maintained robust network activity. New statistics show an increase in transactions, Total Value Locked (TVL), and on-chain volume, which indicates that the network still has the strength to hold.
Network Activity Hits New Highs
More and more users seem to have developed faith in the long-term potential of the network as the total value is locked and the network activity continues to increase. Furthermore, the metric in the US dollar is undervalued as the currency is constantly fluctuating. For this reason, the total volume locked in recent Solana coins stands at 55.37 million, which indicates how bullish the TVL figures are even when measured using SOL, the native currency of the blockchain.
In two days, the on-chain volume averaged over $3 billion. Hence, if the interest of the users within the network was only for bullish trades, Solana would have received a far larger amount of transactions than it did during its launch. Transaction volume has been on a consistent upward trajectory for months, surpassing 67,77 million transactions in the last 24 hours—the highest in nearly a year.
Market Trends and Price Performance
According to most analysts, Solana still hasn’t reached its full potential, even though the network statistics have been impressive. SOL cannot seem to escape the volatile scrapes as well. This time around, the SOL experienced a 23% drop from its highest to lowest level last week. However, the price decline brought SOL into a critical Fibonacci retracement range between the 0.5 and 0.618 levels, hinting at potential support.
The RSI did dip in oversold territory during the recent sell-off, which might suggest potential for further downside ahead. This trend could create hopes of short-term consolidation or recovery. In the spot market, outflows are still negative, but the rate of outflows has been decreasing for the past four days. This could set up for price level off or uptrend movement provided that the wider market conditions improve.
Derivatives Market Shows Mixed Signals
On the derivatives side, there was a negative change in Solana’s open interest over the last two days, happening for the first time In almost 6 weeks. These changes show some caution among derivative traders. Funding rates have, however, started showing signs of positivity in the last 24 hours.
This is an optimistic signal; however, whether the token is primed for an explosive uptrend is still unclear. Changes in the trends in the tokens’ derivatives market and increased spot demand may need attention to determine the direction of the recovery and its longer duration.
