Solana’s DeFi TVL skyrockets 80%: SOL’s next move?

The Solana blockchain has shown a real feat, seeing its decentralized finance (DeFi) total value locked (TVL) increase by almost 80% in the last month alone, jumping according to DefiLlama’s data. This remarkable hike displayed the Solana TVL at the highest level in two years, marking a notable milestone for the network. By the latest update, with a DeFi TVL of $3.8 billion, Solana proved to be one of the fastest growing among the top five with the TVL of DeFi.

A dominant proportion of Solana’s TVL is anchored on the upsurge in trading volume, registered in the Defi protocols and functions atop its Layer 1 (L1) network. The 125% increase in the daily trading volume of these protocols happened just this past month—this stable level ended on March 15th, trading at a peak of over $3.7 billion. Also, the network reached its maximum daily fees since its inception on March 16th, with the fee revenue being $3.61 million and the total daily fees being $1.6 million, which was an all-time high for the network.

While the whole market has been characterized by ups and downs lately, the Solana platform has been resilient to the overall downtrends, pushing the SOL token to new highs. SOL, currently trading at $187, has clocked up a 72% gain in value over the past month. The data is gathered from CoinMarketCap. This confirmation or the optimistic view towards SOL is also supported or noticed by examining its daily trading movements.

The OBV indicator, which measures the buying and selling pressure amount, also shows upswings. Its value has increased by 16% since the beginning of March and now takes the price of 591.42 million. This indicates that the market is fast gaining momentum towards buying SOL.

Furthermore, SOL’s positive path is bolstered by its Chaikin Money Flow indicator, which verifies the outflow and inflow of money in an asset. At present, SOL’s CMF is 0.27 and stands above zero, which makes the market liquidity flow into the SOL market grow; that means that more investors are interested in it and have confidence in Solana’s future development.

The convergence of a robust DeFi ecosystem with the highest trading volume, network fee, and the bullish power of SOL tokens highlights the inescapable fast-growing influence the Solana network has and brings about. This demonstrates the ever-increasing investor view of Solana as a match to cryptocurrency biggies like Ethereum and how it will contribute to the crypto market. Solana has been on the surge as it slowly gets engrossed in this momentum since smart contracts have made the decentralized finance sphere even more interesting. Hence, the scope of monitoring the Solana blockchain must be expanded and noticed.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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