Solana’s DeFi sector is performing well, and DEX is also performing exceptionally well. Solana’s Perpetual DEX (Perp DEX) hit a new record of $8.2 million in Total Value Locked (TVL) in SOL.
This significant development shows that the usage of Solana’s DeFi products is rising, which is a positive sign for the future of the network. As DEX activity increases, the price of Solana also rises. This makes the platform one of the biggest competitors in the blockchain and cryptocurrency industry.
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TVL on Perp DEX hits all-time high
Perp DEX on Solana is growing very fast, and the total value locked in these platforms is increasing exponentially. In August 2024, the TVL is 8.2 million SOL, almost four times the 2.3 million SOL in January. This sharp growth is mainly due to the expansion of major players in the field, including Jupiter Perps, Drift Protocol, and Flash Trade, whose user base and liquidity are still growing.
Between December 2023 and August 2024, TVL has been on an upward trend, indicating that more and more investors trust decentralized trading platforms. For example, Drift Protocol has been at the forefront of this growth and has captured the largest market share. The services provided by these Perp DEXs, such as leveraged trading and perpetual contracts, make them popular as they help users make large transactions without using centralized exchanges.
This is a testament to Solana’s growing dominance as one of the leading networks in decentralized finance. As more traders and liquidity providers enter these Perp DEXs, this ecosystem can expand and surpass other networks in terms of DeFi activity and TVL. Due to the network’s strong infrastructure, high TPS, and low fees, more and more users are interested in the efficient decentralized solutions provided by Solana.
Solana Price Rise
In addition to the incredible growth in TVL, Solana’s price has also shown positive movement in the past 24 hours. It is up about 2%. As of the latest data, Solana is trading at $134.32, up from its previous low of $131.92. This growth has brought Solana’s market cap to over $63 billion, firmly placing it among the top five cryptocurrencies by market cap. With a 24-hour trading volume of over $1.9 billion, Solana’s performance reflects strong investor confidence.
Solana's price action reflects the growing activity on its network, especially in the DeFi and NFT sectors. A surge in the use of Perp DEX is likely responsible for the price increase as more liquidity is locked in the ecosystem. In addition, the growing popularity of decentralized applications (dApps) and other projects built on Solana provides additional support for the network's value.
The chart tracking Solana’s price over the past day shows a sharp recovery after a brief drop to $131.92. The price has since rebounded, indicating strong support at this level. As the ecosystem continues to expand and adoption of decentralized exchanges continues to increase, I expect the price to rise further.
Technical Analysis of Solana Price Trends
Solana’s price action has shown resilience over the past few days, with the cryptocurrency rebounding strongly from a minor pullback. After briefly touching $131.92, Solana’s price has surged to $134.32, showing a positive trend. The steady rise in prices reflects strong market sentiment driven by increased DeFi activity, especially in the Perp DEX space.
Technical indicators show that Solana’s upward momentum is likely to continue in the short term. The price is currently stuck just below the $135 support level, and a breakout above this level will open the doors for further gains.
Therefore, in terms of support, the recent low is $131.92. Therefore, this level can be considered as a critical level to watch. If Solana retreats to this level, the bulls are likely to mount a comeback to remove any short-term selling pressure. Nevertheless, the overall outlook is positive.
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