Solana's network activity has surged despite the challenges in the market. The Total Value Locked (TVL) has reached a record high of 55.37 million SOL, and there has been a significant increase in network activity with 67.77 million transactions recorded in 24 hours, the highest volume in almost a year. This demonstrates growing confidence in Solana's long-term potential.
The on-chain volume has averaged over $3 billion in just two days, highlighting the network's strong performance. However, the price of SOL has faced headwinds, experiencing a notable drop of 23% from its peak. Analysts remain cautiously optimistic, noting that while the network statistics are impressive, SOL has yet to fully realize its potential. The recent sell-off has created hopes for short-term consolidation or recovery.
Despite the volatility in price, the decreasing rate of outflows in the spot market over the past four days suggests a possible shift in sentiment and potential price stabilization or upward movement. In the derivatives market, there are mixed signals, with a decrease in open interest but an uptick in funding rates, indicating a cautious approach among traders but also some optimism.
The increasing TVL and transaction volume on the Solana network indicate a growing faith among users in its long-term viability. The fluctuations in the US dollar complicate asset valuation, but the locked value in Solana coins reflects the network's appeal. The focus for Solana will be to maintain its momentum and carefully monitor user engagement, market trends, and price performance to understand the potential for recovery and growth in the coming months.