Is Solana the Next Bitcoin? You Won’t Believe What Happens Next! 😲

by

Key takeaways:

  • In a twist of fate, Solana’s total value locked (TVL) has ballooned to a staggering $9.4 billion, marking a 54% leap since the fateful day of April 7. Who knew money could grow on trees? 🌳💰

  • Solana’s memecoin daily trading volume has more than doubled since early April. It’s like watching a toddler discover sugar for the first time! 🍭

  • With a bullish V-shaped recovery pattern, the stars align for SOL to rise toward the mythical $300. Can you hear the cash registers ringing? 💸

Ah, Solana’s native token, SOL, has danced its way up by 86% between April 7 and May 26, riding the coattails of a broader altcoin market rally that even saw Bitcoin strut its stuff to new all-time highs above $111,000. Talk about a party! 🎉

But alas, since then, SOL has been like a kid trying to reach the cookie jar, struggling to break above $180. Yet, on-chain and technical data whisper sweet nothings of further gains for this altcoin. Will SOL reach the heights of $300? Only time will tell! ⏳

Solana’s TVL up 54% since April 7

The total value locked (TVL) on the Solana blockchain has surged over 54% to $9.44 billion on May 26, a far cry from the multimonth lows of $6.12 billion on April 7. It’s also up by almost 20% over the last 30 days. Who knew Solana had such a knack for saving? 🏦

Data from DefiLlama reveals that this TVL increase was led by Raydium, which saw a jaw-dropping 52% increase in just a month. Other major decentralized applications like Jupiter DEX, Jito liquid staking, and Kamino Lending also joined the party with gains of 12%, 25%, and 11%, respectively. It’s like a financial buffet! 🍽️

While Solana ranks as the fifth-largest cryptocurrency by market capitalization, it’s ahead of the other top layer-1 blockchains in terms of TVL, second only to Ethereum. Talk about a competitive spirit! 🏆

However, Solana’s $9.5 billion TVL surpasses that of the Ethereum layer-2 ecosystem, which includes Base, Arbitrum, and Optimism. It’s also larger than BNB Chain’s, which integrates seamlessly with Binance and Trust Wallet. Solana is flexing its muscles! 💪

Solana memecoin market cap gains 65%

The rise in Solana’s TVL mirrors an increase in memecoin market capitalization as prices recovered across the board. It’s like watching a phoenix rise from the ashes, but with more memes! 🦅

Most Solana-based memecoins have posted double-digit daily losses in the weekly and monthly timeframes, as shown in the figure below. A majority of these tokens are 50% to 80% from local lows. Ouch! 😬

As a result, Solana’s collective memecoin market cap increased to $13.4 billion on May 26 from $8.1 billion on April 8, a 65% climb in less than two months. It’s like a rollercoaster ride, but without the safety harness! 🎢

This rise in the prices of Solana-based memecoins and market cap was preceded by increasing DEX activity on the layer-1 blockchain. The excitement is palpable! 🎊

The increase in memecoin activity on Solana indicates high network activity and rising usage, positively impacting demand and SOL price. It’s a win-win situation! 🏅

SOL’s “V” chart pattern targets all-time highs

SOL’s price action has been painting a V-shaped pattern on the weekly chart since January, as shown below. It’s like a work of art, but for finance! 🎨

A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It’s completed when the price moves up to the resistance at the top of the V formation, also known as the neckline. Can you say “bull market”? 🐂

SOL appears to be on a similar trajectory and now trades below a supply-demand zone between $180 and $200. A breakout here would increase the chances of the price rising to the neckline at $252 to complete the V-shaped pattern. Beyond that, the next target would be the all-time high above $295, representing a 66% increase from the current price. The suspense is killing me! 😱

The relative strength index has increased to 53 at the time of writing from 36 at the end of March, suggesting that bullish momentum is picking up. It’s like watching a flower bloom in spring! 🌼

As CryptoMoon reported, SOL price could rise by 45% with a decisive bullish breakout above $180 in the coming days. Buckle up, folks! 🚀

Read More

2025-05-26 21:32