The Solana ecosystem has witnessed a surge in activity, with projects gaining mainstream attention and attracting investors seeking high returns. The platform has experienced an unexpected rise in decentralized exchange (DEX) volume, surpassing Ethereum, while the total value locked (TVL) has reached new heights.
Solana-based projects have been the center of attention for traders, leading to a steep increase in prices and outperforming their popular counterparts. Solana’s latest achievement, surpassing Ethereum in weekly stablecoin transfer volume, has further solidified the ecosystem’s growth.
The meme coin buzz has drawn investors to Solana’s ecosystem, chasing yields, airdrops, and high returns. As a result, the stablecoin transfer volume on Solana has soared beyond $360 billion, surpassing Ethereum’s volume of around $150 to $153 billion. This development has propelled Solana’s share in the total stablecoin market to an impressive 42%, a significant increase from its 1.9% share just a year ago.
Surge in Solana price could be the trigger
We expect the surge in stablecoin transfer volume to significantly influence the price of Solana’s native token, SOL, poised for a major breakout. Technical analysis of SOL’s daily chart suggests that the token is experiencing a volume squeeze, which may lead to increased volatility. The Bollinger bands are contracting, and the Relative Strength Index (RSI) has displayed a bullish divergence, supporting the upcoming bullish sentiment.
Solana’s price seems poised for a strong upward movement, with the potential to reach interim highs of $218 in the near future. If the bulls can maintain their strength and clear the $243 range, a fresh bullish push could propel the price towards the $250 mark.
The uptick in decentralized finance (DeFi) activity on Solana has been a driving force behind the ecosystem’s growth, with the TVL surpassing $4.55 billion, according to DeFiLama. The platform now has over 26 DEXs, and the growing interest in initiatives like BONK, WIF, and SLERF has fueled its impressive performance.
