The Surge in Solana’s Total Value Locked (TVL)
The recent upswing in activity on Solana has pushed its TVL to a new high, currently sitting at its highest level in 22 months. According to DefiLlama’s data, Solana’s decentralized finance (DeFi) TVL has reached its highest level since May 2022.
- Solana’s TVL stands at $4.03 billion, marking a 97% rise in the last 30 days.
- It is the only blockchain among the top 10 DeFi networks to experience such a significant increase in TVL within the same timeframe.
Rise in User Demand for Solana
The surge in Solana’s TVL is attributed to a recent uptick in user activity on the network. According to The Block’s data dashboard:
- The monthly count of new addresses on Solana has hit an all-time high.
- Over the past 21 days, the number of unique first signers to transact in the Solana Network has totaled 16.32 million.
- The active address count has reached 22.19 million, the highest since July 2022.
Additionally, the total amount of transaction fees paid on Solana climbed to a multi-month high of $5.08 million on 18th March, as per DefiLlama’s data. On the same day, protocol revenue derived from transaction fees rose to an all-time high of $2.5 million.
SOL Demand and Bearish Sentiments
Despite SOL exchanging hands at $179, demand for the coin continues to outpace sell-offs among spot market participants. Key momentum indicators, such as SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI), indicate:
- SOL’s RSI is at 61.19, and MFI stands at 80.74, favoring accumulation over distribution.
- The positive Chaikin Money Flow (CMF) value of 0.16 suggests an inflow of liquidity into the SOL market.
However, SOL’s Parabolic SAR (Stop and Reverse) indicator hints at a steady rise in bearish activity, reflecting the decline in bullish sentiment in the general market. This indicator identifies potential trend direction and reversals, with its dotted lines above an asset’s price signaling traders to exit long positions or initiate short positions.
