- Solana’s DEX trading volume has surpassed $1 Billion, highlighting a significant rise in decentralized finance (DeFi) participation.
- Despite this, the Solana crypto experienced downward pressure. Moreover, the price hovered around the 20-day exponential moving average (EMA).
- However, Solana’s total value locked (TVL) has shown a strong recovery in 2024. That even surpassed its peak in 2022.
Solana’s DEX network has experienced remarkable growth. It reached the new heights in November 2024. The platform hit a record $109 Billion in DEX trading volume, more than doubling Ethereum’s $55 Billion for the same month. That signaled robust market engagement.
This surge followed a previous peak in March 2024 and was primarily driven by heightened activity in the memecoin sector. That has recently become a significant growth driver for Solana crypto.
Solana’s total value locked (TVL) continues to rise alongside the increase in trading volume. With this, the SOL price was poised to approach $600. This fueled optimism about its prospects.
Memecoin boom driving significant on-chain growth for Solana
The resurgence of memecoins has propelled Solana crypto’s on-chain activity to near-record levels. The considerable rise happened with platforms like Pump.fun and the Raydium DEX setting new benchmarks. This drove the increased transaction volumes.
This uptick in activity was also reflected in the growing number of active addresses. That reached nearly 25 million in November.
Crypto analyst Aylo has commented on X regarding SOL price. The analyst noted that Solana crypto now leads in most metrics, commanding the largest share of DEX volume.
Solana's fundamentals are at ATH.
— Aylo (@alpha_pls) November 17, 2024
It's the dominant chain by most metrics right now, and has the largest share of DEX volume.
It's currently ~29.5% of Ethereum's market cap, and is continuing to be repriced. $SOL will be heading into price discovery soon. pic.twitter.com/hcb0vFVfoX
Also, he believes its price is on the verge of entering a new price discovery phase.
Solana’s DEX volume has exceeded $1 billion, setting a fresh monthly record
With six days remaining in the month, the Solana DEX volume has surpassed $1 Billion. It reached $109.73 Billion in total transactions.
Monthly #DEX volume on #Solana has smashed through $1 Billion. 👀
— Crypto Rand (@crypto_rand) November 25, 2024
Currently at $109,73B with 6 days left in the month! 🔥$SOL wants $600 ✌️ pic.twitter.com/yAUpDi6hNf
Solana Crypto‘s recent performance highlighted its position as a leader in the DeFi space. It witnessed a significant volume spike, especially in November.
This marked a stark contrast to previous months. Furthermore, it signaled the ongoing market shift as Solana recovers from the challenges of 2022.
Likewise, this increase in Solana DEX activity aligned with broader trends in the cryptocurrency market. More individuals and institutions are turning toward decentralized platforms for trading.
Additionally, Solana has become a top choice for decentralized applications (dApps) and users seeking efficiency. With this momentum, Solana is steadily approaching its $600 target, per analyst Crypto Rand.
Is There a Chance for a Comeback for Solana?
On the daily chart, Bitcoin’s price has declined from its all-time high. On the other hand, the Solana crypto price has dropped from its peak of $264.63. That was its highest point this year.
Currently, Solana’s price is finding support at the 20-day EMA. This week, a 16% drop in the daily chart was experienced.
If the SOL price falls below the 20-day EMA, it could continue to decline towards $200 or the 50-day EMA. However, a recovery could occur if it rebounds from the 20-day EMA. This could aim to retest the recent swing high.
Technical indicators suggested increasing bearishness, as the MACD and AO’s histogram have turned negative. Additionally, the Chaikin Money Flow (CMF) was at 0.08. This indicated reduced money flow as Solana’s price declined but was still above the zero line.
However, the RSI has eased from the overbought territory at 57.28. This suggests it remains in the positive zone and may still be poised for a rebound.
Solana’s TVL bounces back and surpasses its 2022 record-high
In 2021, Solana’s Total Value Locked (TVL) skyrocketed, surpassing $10 Billion. However, after reaching its peak, TVL plummeted in 2022, experiencing a significant drop. By mid-2023, Solana’s TVL had fallen to under $1 Billion.
In 2024, Solana’s TVL reversed its downward trend, showing consistent growth since the start of the year. Recently, the TVL surpassed the November 2022 highs, reaching $10.86 Billion,. That signaled a strong recovery and renewed investor confidence in the Solana ecosystem.
If this momentum continues, it could reflect optimism about Solana’s scalability and prospects. The significant TVL increase in 2024 was aligned with the broader growth in the DeFi space. This suggests a bullish outlook for Solana’s future.
If this trend persists, Solana’s TVL could soon exceed its previous peak from November 2022. This solidified its position as a leading blockchain for decentralized finance.
Funding Rate Spikes in Solana Crypto
In mid-November, as Solana’s price surpassed $200, the open interest (OI)-weighted funding rate surged. This signals a strong demand for long-term positions in the future market.
This suggests that as Solana’s price rose, more traders took on long-leveraged positions. The early November funding rate peak reflects the bullish sentiment among traders.
The funding rate reached its peak before correcting, especially around November 15th. This is likely due to profit-taking or liquidations within a narrow price range.
The sustained positive funding rate and the continued upward price movement suggest that the market remained bullish. With this, long positions were still in favor.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
