Solana (SOL) has seen a strong rally since June, reaching a market capitalization of $70 billion. Driven by innovation, the expansion of its DeFi ecosystem, and growing institutional adoption, SOL has proven to be one of the most resilient cryptocurrencies.
Since June 24, Solana (SOL) has experienced an uptrend that has led the cryptocurrency to claim a market capitalization of $70 billion. At the time of writing, the price of SOL is at $152,73 USD (€142,55), with a daily price target of $210 USD (about €186) based on technical analysis.
This bullish trend has been a positive sign for the crypto market in general, as Solana has proven to be one of the most resilient cryptocurrencies amid market volatility. Analysts predict that SOL price could reach $200 as its uptrend continues.
A rally driven by innovation
The reasons behind Solana's revaluation are several. First of all, the Solana community has been working hard to expand its ecosystem and improve its technology. The Solana network is known for its scalability and speed, making it attractive to developers and users alike. Additionally, Solana has seen an increase in the number of DeFi and NFT projects being built on its network, leading to increased use and demand for the cryptocurrency.
We can see part of that expansion and development work in the recent announcement of Blinks and Actions. This is an enhancement to Solana that allows users to create rich links capable of integrating with social networks (ex: X/Twitter). In this way, Solana offers a space for the sale of tokens, NFTs and other crypto-assets deployed in Solana, in a very simple way, without having to use code, completely transparent to the user and integrated with wallets such as Phantom.
Another factor that has further boosted Solana's price is the filing for Solana ETFs by 21Shares and VanEck. While no Solana ETF has yet been approved, the application and subsequent approval of these financial instruments could provide a more accessible way for retail and institutional investors to invest in the cryptocurrency, which could lead to an increase in demand and , therefore, in the price of SOL.
In fact, many investors believe that Solana will experience an "Ethereum moment", referring to the sharp rise in the price of ETH in 2017. If this prediction comes true, we would be facing a Solana that would not only recover its previous ATH of 242,02, €200, but will probably remain above €XNUMX as its new base price, thus ensuring a strong presence in the crypto markets.
DeFi shining
Other relevant points that have also highlighted the value of Solana are related to the expansion of the DeFi and institutional sector in this network. According to data from DeFiLLama, Solana's growth in Total Value Locked (TVL) in DeFi has exceeded $4,6 billion. This is a significant rebound, since by January 2024, that TVL was barely over $1,2 billion.
Solana's DeFi situation has been so positive that the Top 10 of its protocols have been in the green for almost an entire month, and we are already beginning to see several protocols that have exceeded one billion TVL (e.g. Raydium, Jito or Marinade ), a fact that indicates that the protocols are settling and maturing in their own ecosystem.
VISA and financial giants join Solana
On the institutional side, the circle arrival (with its USDC stablecoin), arrival gives VISA (with its financial integration and the use of USDC). As well as the integration of Shopify payments and of Stripe, have strengthened Solana's place as a blockchain network for fast and cheap payments, with widely accepted stablecoin options (such as USDC) or a highly valued token (such as SOL).
Given what has been seen, it is very clear that Solana has the potential to reach the goal of $210, and thereby create a new floor of value for its token. And everything seems to indicate that Solana will finally become the third major cryptocurrency in the ecosystem, thereby displacing BNB. All of this driven by its innovative technology, its active community and the possibility of ETF approval. However, it is important to remember the risks associated with cryptocurrency investments and conduct thorough research before making any decisions.
