Solana Coin: Should You Buy or Not?
Solana (SOL) has exhibited robust performance in 2023, defying interest rate hikes and regulatory pressures impacting the US crypto market. As crypto investors navigate these dynamics, they are evaluating the potential of buying SOL in its current state.
Solana Coin Chart
Remarkably, investors have staked over 93% of Solana’s circulating tokens. Data provided by StakeRewards on December 2 reveals that 395.88 million SOL has been staked in the protocol.
- This stake amount represents 93.33% of Solana’s circulating supply (424.21 million SOL).
- According to StakingRewards, SOL has a market capitalization of $26.43 billion with a staking market value of $24.64 billion.
Solana Coin Reviews
Solana’s Total Locked Value (TVL) from the DeFi ecosystem has increased by 63% in a month and 12.24% in a week, as reported by DefiLlama on December 2.
This TVL surge has propelled SOL to the top of the list, surpassing other chains and securing the seventh spot, displacing Avalanche (AVAX), with a locked value of $678.7 million and widespread utilization in protocols.
The high staking rate and TVL growth suggest an upsurge in interest and demand for SOL in the market. Additionally, it underscores investors’ readiness to lock their liquidity long-term, reflecting confidence in the protocol. Notably, major cryptocurrency exchange Coinbase has announced its support for Solana.
The Future of Solana Coin
Another crucial consideration is the potential downturn in Solana. Solana boasts one of the most inflationary tokenomics among all cryptocurrencies.
The substantial supply inflation has impacted investors, evident in the price drop following its all-time high (ATH). StakingRewards measurements show a negative real reward rate adjusted for annual inflation for SOL staking.
The daily value of locked tokens in Solana is approximately $5.33 million, presenting a potential threat to investors. Finally, Solana’s impressive price performance in 2023 may incentivize investors to secure profits.