Solana price has recovered this month, making it one of the best-performing coins in the crypto industry. It jumped to a high of $180 on Saturday, and is hovering at its highest level since March this year. It has spiked by almost 90% from its lowest point this year. This article explores why the SOL price may be a coiled spring ready to pounce.
Solana meme coins are rebounding
One of the top reasons why the SOL price is about to surge is that Solana meme coins have gone parabolic in the past few days. Official Trump Coin price has surged by 29% in the last seven days, while Bonk, Fartcoin, Dogwifhat, Pudgy Penguins, and Popcat have all soared by double digits.
This recovery has brought the market cap of all Solana meme coins to $13.1 billion, up from $6 billion a few weeks ago. It is a sign that these tokens will always do well when there is a rally in the crypto market.
The surge in these meme coins helps to boost Solana’s sentiment, and boosting its ecosystem revenue and fees. Data shows that the volume handled by decentralized exchange protocols on Solana rose by 7% in the last seven days to over $21.7 billion, bringing th 30-day figure to $80 billion.
Solana’s network handled more assets than Ethereum and BSC, which handled $51 billion and $35 billion, respectively.
SOL stablecoin market cap is soaring
Stablecoins are the currencies that people use in the cryptocurrency industry since one cannot use fiat currencies like the US dollar and the euro. Therefore, one of the top metrics to look at when evaluating a cryptocurrency’s growth is the stablecoin market cap.
Solana has one of the most active stablecoin presence, with their market cap jumping to over $12 billion. While this figure is smaller than Ethereum’s $215 billion and Tron’s $73 billion, it is a sign that it is growing. Similarly, the total value locked (TVL) in th Solana ecosystem has jumped to almost $10 billion today.
All these factors have contributed to the robust fees that Solana has made this year. Data shows that Solana has made $710 million this year, making it the third-most profitable network in the crypto industry after Tether and Tron. It has beaten Ethereum, which has made $616 million.
Staked Solana inflows is rising
Further, investors have pumped over 7 million SOL tokens worth $1 billion to Solana staking pools, bringing the total staking market cap to almost $70 billion. This growth has brought the staking ratio to 65%.
The rising demand is a sign that investors will also allocate money to spot Solana exchange-traded funds (ETFs) when they are approved by the SEC. JPMorgan analysts predicts that these funds will attract over $6 billion in inflows in the first year.
A key driver for this ETF inflow is that the SEC may approve staking in these ETFs, making them more viable than the existing Ethereum funds.
Solana price prediction
SOL price chart | Source: TradingView
The daily chart shows that the SOL price has staged a strong comeback in the past few weeks, rising from a low of $94 to $180 today. Solana has already moved above the 50-day and 100-day Exponential Moving Averages (EMA).
It has also jumped above the 38.2% Fibonacci Retracement level. Also, the MACD and the Relative Strength Index (RSI) have continued rising. Therefore, the coin will likely keep rising as bulls target the 61.8% retracement point at $220. A move above that level will point to more gains, potentially to $300.
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