Solana network and DeFi activity suggest SOL price rally will continue
Solana's native token, SOL, increased by 24.8% from May 6 to May 10, driven by a broader altcoin market rally after Bitcoin surpassed $100,000. SOL has faced challenges maintaining a price above $180, but on-chain data indicates potential for further gains. Solana ranks fifth in cryptocurrency market capitalization and leads in total value locked (TVL) with $10.9 billion, exceeding the entire Ethereum layer-2 ecosystem and BNB Chain. Key projects like Raydium DEX, Jito, and Marinade have shown significant TVL growth. Solana generated $43.3 million in fees over the past month, indicating rising demand for SOL. With 65% of SOL supply staked, upward price momentum is supported. The current perpetual futures funding rate for SOL is 8%, suggesting neutral trader sentiment. Despite trading 40% below its all-time high of $295, increasing network activity hints at a potential rise to $200. Possible catalysts for price increases include a spot Solana ETF approval and traditional asset tokenization on the network.
