Solana (SOL) Rockets to Sixth Largest Crypto, Eyes $70 Breakout

• Solana’s eco shows a significant growth in the crypto market, outpacing competitors with a 56% increase in Total Value Locked.
• The native SOL token has risen over 500% this year, making it the sixth-largest cryptocurrency by market cap.

The Solana eco has become a major player in the reviving cryptocurrency industry after the turbulent FTX crash phase. The network’s advantages of reduced transaction fees and quicker processing times are largely responsible for this comeback, making it a strong rival to Ethereum, the industry leader for a considerable amount of time.

Recent data have highlighted this increasing trajectory. The value locked in Solana’s decentralized finance (DeFi) protocols has increased significantly, according to on-chain data source DeFiLlama. Solana’s expansion strengthens its market position, surpassing other blockchain networks.

Comparative Growth and Market Position

Over the last month, Solana’s Total Value Locked (TVL) has grown by 56%. Over $650 million in assets are now locked within Solana-based DeFi solutions as a result of this spike. For context, the closest competitor, Avalanche, saw its TVL grow by 22%, with Ethereum and Arbitrum recording increases of 16% and 18%, respectively. Notably, Tron witnessed a slight decline in its value within the same timeframe.

Despite these gains, it’s crucial to note that Solana’s TVL still lags well behind Ethereum, which has a market capitalization of around $28 billion. It is still unclear if Solana can close this significant deficit, especially in light of its high TVL of over $10 billion during the bull market in 2021.

SOL Token’s Performance and Future Outlook

Concurrent with the expansion of its DeFi eco, the Solana network’s native SOL coin has witnessed a notable rise in value. With a valuation of $25.6 billion, SOL has increased in value by almost 500% since the start of the year, making it the sixth-largest cryptocurrency asset by market cap. At $60.4, the cryptocurrency is now trading below its yearly high of $67.63, but it still has room to grow.

Expert forecasts regarding SOL’s performance in the future differ. A new all-time high for SOL is predicted by several analysts, including well-known users of social media sites like Twitter, with estimates ranging from $300 to an astounding $1,000 in the upcoming years

In-Depth Price Analysis of SOL

Examining SOL’s price fluctuations in more detail reveals a conflict between resistance and gains. SOL saw resistance close to the $65.00 level after attempting to break through the $60.00 barrier zone. A corrective dip below the $63.20 support zone resulted from this barrier. The price is presently bouncing over $60.00, with the $60.00 and $59.50 marks providing strong support.

Recommended for you

• The Rise of Crypto Giants: A Look at Dogecoin (DOGE), Ethereum (ETH), and VC Spectra (SPCT)• New BNB Chain TVL Incentive Program Offers Up to $160K for Web3 Projects Building on opBNB• Ripple’s CBDC Tech Chosen for Eco-Friendly Insurance Settlements by Tech CompanyA significant contracting triangle forms on the 4-hour SOL/USD chart, closely corresponding to the 50% Fib retracement level of the most recent bullish wave. A breach of the $59.50 support level would trigger a more severe drop, possibly reaching the $55.00 mark. On the other hand, if SOL manages to overcome the short-term resistances around $64.00 and $65.00, it might move toward the $68.50 resistance area and possibly even higher levels.

Regarding SOL, the market seems to be cautiously bullish. Relative Strength Index (RSI) and 4-hour MACD are two technical indicators pointing to increasing bullish momentum. In particular, the RSI is above the 50 level, suggesting a positive trend.