The Solana network has recently experienced a significant upsurge in user demand, leading to an impressive increase in its decentralized finance (DeFi) total value locked (TVL), which has reached an all-time high of over $13 billion. As purchasing activity escalates, the price of the SOL token has surged nearly 25% in just one week, raising questions about whether this momentum will be sufficient to drive the altcoin back toward its previous record price levels.
According to data from DefiLlama, Solana’s DeFi TVL currently stands at an impressive $13.38 billion, reflecting an 18% increase in the past week alone. This dramatic rise indicates a robust influx of capital into Solana’s DeFi protocols, a trend that can be maintained only with sustained user demand and enhanced on-chain activity.
Further supporting this positive outlook, data from Artemis corroborates an uptick in both daily active addresses and transactions within the Solana network. Over the past week, the number of daily active addresses that engaged in at least one SOL transaction has surged by 37%. This growth in user participation has directly correlated with an increase in daily transaction volume, which has risen by 17% during the same period. Such a shift in activity illustrates a growing confidence in the Solana ecosystem and enhanced utility for SOL as a native asset.
With this burgeoning network activity, attention is now turning toward the potential performance of SOL in the market. Currently, SOL has increased by 22% over the week and is trading at approximately $246.91. Insights from the Chaikin Money Flow (CMF) indicator, showing an upward trend, underscore the strong demand propelling this rally. As of now, the CMF reading stands at 0.23, suggesting that capital inflows are significantly outweighing outflows, thereby reinforcing a bullish outlook for the token.
If this momentum persists, SOL could extend its upward trajectory towards the next resistance level of $270.18. A successful breakthrough past this level could set the stage for SOL to reclaim its all-time high of $295.83. However, experts caution that if user demand diminishes and inflows slow, the cryptocurrency may encounter significant downward pressure, with potential declines towards $219.21.
In conclusion, while the signs point toward a robust recovery for Solana, the future price action will be contingent on maintaining high levels of user activity and capital inflows.
