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- Solana is rubbing shoulders with Bitcoin and Ethereum as it records some weekly growth and booming network activities.
- The weighted funding rate of Solana across various exchanges shows positive numbers.
Crypto trader Kaleo has in the latest report identified a strong resistance line in Solana (SOL)’s pair with Ethereum (ETH), indicating a massive rally against the second-largest crypto by market cap. With a current price of $20 and a neutral sentiment, Solana has stood toe to toe with Bitcoin and Ethereum in the past week with an 8 percent surge. In comparison, Ethereum is 1.07 percent down in the last seven days, and Bitcoin is 1.6 percent down over the same period. Interestingly, Bitcoin and Ethereum have a current bearish market sentiment.
According to market data, Solana has also surged by 2.7 percent in the last 24 hours and has recorded a 24-hour trading volume of $952,910,045 in addition to a rising market cap which currently stands at $8,079,672,233.
This altcoin has been the possible destination for several Web3 users as its ecosystem activities see a huge acceleration. According to DeFiLlama, Solana is ranked sixth in weekly decentralized exchange volume. In percentage-wise, this is an 84 percent surge. Its accumulated volume has so far surpassed $57 billion. Another area of growth is the trading volume of NFTs on Solana. The USD volume for NFTs is getting closer to $3 million, which is a little higher than the previous year.
Despite these positive numbers, its Total Value Locked (TVL) has been unencouraging after falling in November 2022 and making little to no progress afterward.
How Solana Bounced Back From FTX Saga
As of press time, the TVL was around $270.5 million. Unfortunately, there is no sign of any future upward trend. Apart from this, all other metrics indicate that investors are regaining confidence in the asset after the FTX saga sent the price plummeting.
While Solana has limited exposure to the failed crypto exchange, FTX and Alameda Research reportedly held a portion of the asset on their balance sheet. On top of that, the altcoin was frequently praised by the FTX founder Sam Bankman-Fried.
According to Steve Sosnick, chief strategist at Interactive Brokers, the lack of intrinsic value of these cryptos causes them to easily suffer.
The general problem with crypto is that its lack of intrinsic value means that values are based on confidence and perceived utility. If those suffer in relation to a specific token, then it suffers.
Data analytics firm CoinGlass has noted that Solana has improved in its overall market sentiment in the past week. According to them, the weighted funding rate has recorded some positive figures across different exchanges. This indicates that investors are very expectant of a future price surge. Data also indicates that investors have a prevalent preference for long positions for the asset. Analysts believe that the recent data can potentially attract new investors and drive its value since it paints a picture of a positive outlook.
Its recent performance is found to be a great comeback after the asset lost some of its gains together with Bitcoin, Ethereum, and Litecoin. Interestingly, the price staged a comeback after the US Securities and Exchange Commission filed a lawsuit against Binance and Coinbase for offering unregistered securities. This is quite interesting considering the fact that Solana together with some other altcoins were categorized as securities in the lawsuit. After trading below $15, the asset bounced back from its June low to record a 48 percent surge.
