Dune Analytics reports that the quantity of Solana stablecoins surged 156% year-on-year, reaching $3.76 billion.
Important market players include the growth of DeFi possibilities and liquidity protocols, the porting of Ethereum-based applications to Solana, and others.
When considering the percentage of new currencies that arise on decentralized exchanges, Solana takes the lead in the crypto ecosystem.
On Monday, SOL was trading at $142, with a 12% surge to $160 as a goal.
One of Ethereum's main rivals, the smart contract blockchain Solana (SOL), has had its stablecoin supply rise by 150%. This is due to many factors, including the growth of DeFi possibilities, improvements to liquidity and lending protocols, and the migration of projects from Ethereum to Solana.
Data from DeFiLlama shows that the total value of assets locked (TVL) on the Solana blockchain has more than tripled since the start of the year, surpassing $4.82 billion. The native token SOL of the Solana ecosystem is well-positioned for an impending rally towards the $160 objective, thanks to the growing utilization of the ecosystem.
Solana price surge sparked by three factors
On August 12, according to data from Dune Analytics and 21Shares, the supply of Solana stablecoins was $3.76 billion. This statistic is a good indicator of the user-facing DeFi possibilities in the SOL ecosystem.
Crypto traders often use stablecoins, which store money as collateral, as an entry point and an exit point, respectively. Thus, an increase in the supply of stablecoins on exchanges shows that traders are bringing in money by purchasing stablecoins with fiat currency. The quantity of Solana stablecoins has grown by 156% year-over-year.
Almost $5 billion in retail
There are cryptocurrency assets locked in Solana that are getting near to $5 billion in worth, according to data from DeFiLlama. You can see that TVL is worth $4.82 billion as of August 19th in the graphic below. From the start of 2024 forward, TVL saw profits thrice.
Lending methods provide up more possibilities in DeFi
Users of the Solana ecosystem now have additional chances to profit with the cash placed on SOL thanks to projects like Sanctum, Jito, and Kamino. In only three months after its launch in Solana, PayPal's stablecoin PYUSD amassed a market worth of $300 million, all because to the Kamino protocol, which allows users to engage in lending.
Despite providing PYUSD on the Ether chain for over a decade, the project has had difficulties with scaling on Ethereum.
A Solana blockchain network, Sanctum is well-known for its liquid token staking and for providing developers with the tools they need to create innovative crypto staking apps. To get the most out of your Solana transactions, use Jito, a Maximum Extractable Value (MEV) bot. Money in the Vein (MEV) is the profit that may be made by filtering or rearranging blockchain transactions.
Dune Analytics data reveals that among the blockchains in the ecosystem, Solana has the most new tokens introduced to DEXes, followed by Base, Ethereum, BNB Chain, Polygon, and others.
Because meme currencies are popular and listed on DEXes like Raydium, Solana has been able to establish itself as a dominant player.
Since October 2023, Solana has been steadily increasing in value. The trend has been mostly flat as of late, with the Ethereum rival regaining its footing over $140 after a precipitous drop below $110 on August 5th. On the daily chart, the momentum indicator known as the Relative Strength Index (RSI) is showing a reading of 43.54, which is below the neutral level.
SOL has the potential to gain 12.33% more ground and reach $160.09, the 50% Fibonacci retracement level of the drop from $210.18 (its high on March 18) to $110 (its low on August 5). At the Fair Value Gap (FVG), which is located between $150.79 and $152.54, Solana encounters opposition.
Looking downward, Solana reaches a level of support at $121, which has maintained prices for three months, and then the all-time low of $110, which was reached on August 5th.
