2024-03-23 04:14:42
Posted on: March 22, 2024
- Solana’s TVL is at its highest level in 22 months.
- The key technical indicator hints at increased bearish activity in the SOL market.
Solana [SOL] Decentralized finance (DeFi) total value locked (TVL) has reached its highest level since May 2022, according to DefiLlama’s data.
At press time, the Layer 1 (L1) network TVL was $4.03 billion, having increased 97% in 30 days. According to DefiLlama’s ranking, Solana is the only blockchain among the top 10 DeFi networks whose TVL has increased this much in the last 30 days.
Increased user demand for Solana
Solana’s TVL increase is attributed to a recent increase in user activity on the network.
According to data from The Block panel, the monthly count of new addresses on Solana has reached an all-time high. In the last 21 days, the number of unique first signers transacting on Solana Network reached 16.32 million.
Additionally, the month so far has been marked by a significant increase in active address counts. AMBCrypto found that this amounted to 22.19 million, representing Solana’s highest level since July 2022.
Due to increased user activity on-chain, the total amount of transaction fees paid on Solana rose to a multi-month high of $5.08 million on March 18.
Data from DefiLlama showed that on that day, the protocol’s revenue from transaction fees rose to an all-time high of $2.5 million.
SOL demand declines, but bearish sentiments increase
SOL was trading at $179 at the time of this publication, according to CoinMarketCap’s data. Although affected by the overall market decline last week, demand for SOL continues to outpace coin sell-offs among spot market participants.
AMBCrypto’s readings of the coin’s key momentum indicators showed that they were positioned above their neutral lines at the time of publication.
For example, SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 61.19 and 80.74, respectively. These values showed that day traders favored SOL accumulation over distribution.
Furthermore, the positive Chaikin Money Flow (CMF) value of the coin indicated an influx of liquidity into the SOL market. At the time of writing, SOL’s CMF was 0.16.
How much they cost 1,10,100 SOL are worth today?
However, despite this, SOL’s Parabolic SAR (Stop and Reverse) indicator hinted at a steady increase in bearish activity, reflecting the decline in bullish sentiment in the overall market.
This indicator identifies possible trend directions and reversals. When its dotted lines are above the price of an asset, traders take it as a signal to exit long positions or initiate short positions.
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