The total value locked (TVL) on the Solana network has crossed $1.8 billion for the first time since 2022, according to data on DeFiLlama.
Activity on Solana has been steadily rising since the end of last year, but the blockchain is still way off its all-time high (ATH) of $10.03 billion TVL, set on November 9, 2021.
Looking at the historical data, today’s milestone is no small feat. Throughout most of early 2022, there was roughly $4 billion locked on the network. It started 2022 with over $6 billion TVL.
That May, Terra’s UST stablecoin collapsed. It was a catastrophe that spread contagion across the industry and dealt a severe blow to crypto’s image. A sudden exodus of funds caused Solana’s TVL to plunge below $1.8 billion by June 16, 2022. It has stayed below this level until today.
Solana’s Price Recovers with TVL
The price of the network’s native token SOL has been climbing all week, according to data by CoinGecko. SOL is up 4.2% in the last 24 hours and 5.6% in the last seven days to trade at $105.19 at the time of writing.
The gains are spurred on by a market-wide rally led by Bitcoin and Ethereum, which in the last week have both climbed 8.5% and 7.2% respectively. The two coins have long dominated the market and it’s a general rule of thumb that when they’re doing well, every leading project is doing well.
Solana’s intraday gains yesterday far outpaced the two, but today the coin’s rally appears to have cooled a little.
Looking at the chart, Solana’s price has been here a few times since New Year, but has trouble breaking out. It has yet to reclaim its post-recession high of $123 set on Christmas Day, 2023, although with a current relative strength index (RSI) of 60 suggests healthy buying activity that is likely to continue.
Source: TradingView
Hedge Against Solana Outages With Bitcoin Minetrix
Solana’s sophisticated smart contracts and slick scaleability make it the market’s number one Ethereum killer. Crypto may still be a speculative asset, but the smart money is clearly on stalwarts like Solana, Bitcoin and Ethereum, which all have steadily growing networks.
There are several potential red flags around the token that have historically affected the price. Since it’s a more centralized network than many so-called Ethereum killers, there are occasional outages which stop transactions getting processed. One such outage happened on Tuesday.
The blockchain’s creators have also been criticized for their close ties to FTX and its sister company Alameda, crypto’s biggest scandal to date and one of the biggest bankruptcies in history.
In any case, it’s always good for investors to diversify their portfolios. Ethereum-based Bitcoin Minetrix is a promising addition to any balance sheet. Its native token, BTCMTX, has raised $10.5 million in an ongoing presale.
BTCMTX holds all of DeFi’s early promise of enabling investors to put their money to work in innovative ways. The USP of the project is that it enables token holders to mine Bitcoin without needing to buy any equipment. This is thanks to a simple but ingenious process called cloud mining.
China’s latest crackdown on #Cryptocurrency mining signals a major shift in the regulatory landscape.
Will this push towards energy conservation lead to a more sustainable future for #Crypto, or will it simply relocate mining operations elsewhere? #BitcoinMinetrix has… pic.twitter.com/3GkQeLND6F
— Bitcoinminetrix (@bitcoinminetrix) February 5, 2024
Users purchase and stake BTCMTX on the platform and receive tokenized mining credits. They can then spend them on hash power. The greater the hashpower, the more rapidly cloud Bitcoin mining software can break the network’s cryptographic code to validate blocks of transactions and receive rewards in Bitcoin.
In addition to the Bitcoin accrued from mining, the platform rewards staking with BTCMTX, creating a lucrative double stream of revenue.
The post Solana Price Prediction as TVL Crosses $1.8B for First Time Since 2022 – What’s Next for SOL? appeared first on Cryptonews.