The cryptocurrency market continues to show volatility, and Solana has recently experienced a notable rebound. The price of SOL has surged by 36% since hitting its lows during the recent market crash, capturing the attention of investors and analysts alike. However, the question remains: Is $180 SOL the next stop?
Over the past week, the Solana network has witnessed an uptick in deposits, raising hopes for a sustained rally toward the $180 mark. Currently priced at approximately 57% down from its all-time high, SOL is facing challenges related to its Decentralized Applications (DApps) activity. Nevertheless, some analysts argue that the recent growth in deposits may be a catalyst for continued price increases in the short term.
In terms of financial metrics, Solana has established itself as the second-largest blockchain by total value locked (TVL), boasting an impressive $6.9 billion. In the seven days ending on April 16, Solana gained 12% and overtook competitors like Tron, Base, and Berachain. A significant contributor to this growth includes a 30% increase in deposits on Sanctum, a liquid staking application.
Moreover, Solana has regained the top spot in Decentralized Exchange (DEX) activity, surpassing Ethereum layer-2 solutions. During the same period, trading activity on Solana DApps reached a staggering $15.8 billion, exceeding the combined DEX volume of Ethereum scaling solutions by over 50%. With platforms like Pump-fun and Raydium showing substantial increases in volume, it is clear that Solana is on an upward trajectory.
Despite this positive momentum, it’s essential to approach Solana’s growth with cautious optimism. Analysts speculate that a Solana spot Exchange-Traded Fund (ETF) may be approved in the United States by 2025. However, expectations for significant capital inflow remain limited, primarily due to a general lack of interest among institutional investors at this time.
Investors are keenly awaiting the results of a full audit of US federal agencies’ crypto holdings, initially expected by April 7. However, recent delays have raised questions about whether findings will ever be disclosed. Without external factors driving new participants into the market, growth in TVL and DEX activity alone may not be sufficient to propel SOL to outperform the broader market.
In conclusion, despite recent gains and positive indicators, reaching the $180 milestone may require more than just internal improvements in the Solana ecosystem. Investors should remain vigilant and monitor upcoming developments closely.
