In short: The crypto market experienced significant volatility last week, resulting in steep declines for most coins. However, today there has been a slight recovery, with Solana's native token, SOL, showing the most notable gain of over 3% in the past 24 hours. Despite this, the sustainability of SOL's rally remains uncertain due to the market's high volatility. SOL had faced bearish days in June following its SEC listing as a security, causing its price to drop by over 41%. However, it reached a monthly high of $29.31 on July 13 after positive news surrounding Ripple's lawsuit against the US SEC. Despite recent losses, SOL has shown a 30-day price growth of over 52%. The trading volume for SOL has also increased, suggesting growing interest in the token and associated products. SOL-based investment funds have experienced a surge in assets under management (AUM) following the positive outcome of Ripple's lawsuit. CCData's report indicates that SOL-based investment products saw a 55.7% increase in AUM, reaching $87.8 million in July. Solana's DeFi ecosystem was affected by regulatory uncertainty and the FTX fiasco but has shown signs of recovery since the partial resolution and improved regulatory sentiment. Solana's total value locked (TVL) reached a yearly peak of approximately $1.1 billion before retracing to $313.9 million, with a slight increase to $316 million. There is a possibility of a more bullish rebound for SOL once the regulatory issues are completely resolved.
Our quick analysis:
The crypto market can often feel like a wild rollercoaster ride, and last week was no exception. With steep declines across most coins, it seemed like the bears held the upper hand. Yet, in a pleasant surprise, today's market has witnessed a slight recovery, with Solana's native token, SOL, leading the charge with impressive gains.
While other major coins like Bitcoin struggled to cross the 1% mark, SOL recorded over 3% price growth in the past 24 hours. Sitting comfortably at the ninth spot among the top-gaining coins today, SOL has grabbed the attention of investors. However, given the recent volatility, the sustainability of this rally remains uncertain for the bullish SOL crowd.
SOL's recent price history can be described as a rollercoaster ride itself. In June, it faced bearish days after being included in the SEC's list of tokens labeled as securities in their lawsuit against Binance and Coinbase. This led to a significant drop of over 41% between June 3 and June 16, with the price consolidating between $15 and $19.
But July brought a ray of hope for SOL holders. Ripple's victory against the US SEC in their long-standing lawsuit breathed new life into the industry, causing SOL to reach a monthly high of $29.31 on July 13. Despite recent setbacks, SOL has managed to maintain an overall bullish trend, with a remarkable 52% price growth in the past 30 days.
Interestingly, SOL's recent surge in popularity has been accompanied by a surge in trading volume. On July 26, SOL witnessed a staggering 57.07% increase in trading volume, which indicates a growing interest in SOL and related products.
This increased interest can also be observed in the growth of Solana-based investment funds. After Judge Torres ruled that XRP token sales on the secondary market are not investment contracts, SOL-based investment products experienced a significant boost. According to CCData's digital asset management review, SOL-based investment funds' assets under management (AUM) shot up by 55.7% to $87.8 million in July. It seems that SOL's impressive performance played a crucial role in attracting investors.
Another positive sign for Solana's ecosystem is the recovery of Solana DeFi activity. Regulatory concerns and the FTX fiasco had previously taken their toll on sentiment surrounding Solana-based decentralized finance (DeFi) applications. However, with the partial resolution of regulatory woes and growing optimism for a clearer regulatory landscape, Solana DeFi is starting to show signs of improvement.
Data from DeFi Llama reveals that Solana's total value locked (TVL) reached a yearly peak of approximately $1.1 billion on July 14 before retracing to $313.9 million. Although there has been a slight increase recently, with TVL standing at $316 million, there is potential for a more bullish rebound once ongoing regulatory issues receive a complete resolution.
In this ever-changing crypto landscape, SOL has exhibited resilience in the face of volatility. Its recent gains, increased trading volume, and the recovery of Solana DeFi activities all highlight the rising optimism surrounding the project. While the market may still be uncertain, SOL's performance indicates that it could be a coin worth keeping an eye on.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves risk, and readers should do their own research before making any investment decisions.
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Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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