Recently, Solana (SOL), one of the top 100 cryptocurrencies, has gained 20% and is presently trading at $23.09. But what motivates this strong performance? Let’s explore the elements causing Solana’s rise.
Solana’s affordable access to decentralised finance (DeFi) is one of its primary draws. Ethereum is infamous for charging exorbitant petrol expenses at specific times, which scares away some investors.
Despite an increase in Solana’s total value locked (TVL) in DeFi, the figures are not as stunning as one might expect. Only a $7 million increase in the TVL can be seen. Compared to Solana, Ethereum has a substantially greater TVL, which would be quickly surpassed by even a slight increase in Ethereum’s TVL.
Market perception of Solana is largely favourable, particularly in light of the continuous changes to its ecology. Investor trust is increased by the constant announcement of new initiatives and collaborations.
Solana has succeeded in keeping a commanding position from a technological perspective. The asset has shown to be resilient in a somewhat erratic market by remaining above fundamental technical levels and guaranteeing its 25% growth.
Solana has an extensive roadmap that includes a number of forthcoming updates and new features. These changes can increase its value and, thus, its price.
Even while Solana is growing, it’s important to keep the bigger picture in mind. Its DeFi TVL is not as significant as it could be, and Ethereum continues to be a fierce rival. For DeFi aficionados, Solana provides a quicker, less expensive option, which may be a major driver of the recent price increase. Investors should monitor this asset, but they should also exercise caution given the erratic nature of the cryptocurrency market.
