Solana’s Remarkable 50% Surge in Two Weeks
Solana (SOL) has experienced a remarkable rally, surging by over 50% in just two weeks. This surge has been fueled by various factors, including significant support from Coinbase and increased institutional interest.
The Role of Coinbase in Solana’s Surge
Coinbase (COIN) has emerged as a significant source of bullish pressure for Solana. According to data tracked by cryptocurrency analytics firm Kaiko, SOL’s cumulative volume delta (CVD) on Coinbase has increased by nearly $1 million since October 25, indicating a substantial influx of capital into the cryptocurrency.
Cumulative Volume Delta (CVD): A Key Metric for Market Sentiment
The cumulative volume delta (CVD) metric is a valuable tool for assessing market sentiment. Positive CVD values indicate an excess of purchase volume, signaling bullish sentiment, while negative values suggest the opposite.
Coinbase’s Leading Role and VanEck’s Bullish Prediction
Coinbase’s prominence in the SOL market aligns with recent developments in the cryptocurrency space. VanEck, an institutional asset manager, has published a report outlining a bullish scenario that could potentially drive SOL’s price as high as $3,200 by 2030. This optimistic prediction is based on the possibility of Solana becoming the first blockchain capable of accommodating applications with over 100 million users.
On-Chain Activity and Price Gains Discrepancy
Despite Solana’s impressive price gains, on-chain activity has not experienced a corresponding surge. Data from DefiLlama reveals that the total value of assets locked in Solana-based decentralized finance (DeFi) protocols has decreased from 12.03 million SOL to 10.23 million SOL in just two weeks, marking the lowest level since April 2021.
What’s Next for Solana?
As Solana continues to capture the attention of investors and institutions alike, the cryptocurrency market is closely watching for developments that could shape its future. Market participants will be monitoring Solana’s ability to attract more users and developers to its ecosystem, as well as its capacity to support applications with massive user bases, as suggested by VanEck’s report. Additionally, the cryptocurrency’s resilience in the face of market fluctuations and its ability to adapt to evolving trends will be crucial factors in determining its long-term success.