The Rollercoaster Ride of SOL
From October 1 to October 9, Solana’s native token, SOL, took a dive, dropping 10%. Picture a rollercoaster that suddenly forgets to go up – it’s a wild ride! Currently, SOL is grappling to keep its head above the water, hovering around the crucial $140 support level. Meanwhile, the broader altcoin market managed to squeak out a 4% gain during that same time. Bravo, altcoins!
Future Aspirations: $190 on the Horizon?
Is SOL destined to revisit the mighty $190 it touched back in late July? Well, hold onto your hats because we need to unravel a few threads first. A glance at derivatives traders’ actions and how Solana stacks up against competitors can provide some clarity. More blockchain activity generally means a higher demand for SOL, especially for those pesky processing fees.
Solana’s On-chain Metrics: A Mixed Bag
Ah, the infamous on-chain metrics – they can be as clear as mud! Increased network use doesn’t guarantee a price boost, but traders often collect SOL for participating in airdrops and other incentives. Recent trends show tumultuous activity on the Solana network since it peaked at $190. An evaluation of onchain data alongside competitors might reveal whether SOL has the spunk to come out on top in the months ahead.
Daily Volume Declines: Keeping Up with Competitors?
According to DefiLlama, Solana’s average daily volume in July was a whopping $1.8 billion. Fast forward to the present, and that figure plummeted to $1.2 billion – a shocking 33% drop! For context, Ethereum’s decline was a more tender 7%, and BNB Chain actually thrived with a 48% surge in daily volumes. Looks like Solana is taking swimming lessons from a brick!
TVL: The Hidden Gem of Solana’s Activity
Despite the decline in on-chain volumes, there is a silver lining: Total Value Locked (TVL). On October 8, Solana’s TVL was at 37.7 million SOL, rising from 35.8 million SOL a month prior. While that’s a seemingly meek 5% increase, it’s important to compare it against Ethereum’s 2% decline and BNB Chain’s 6% drop. Oh, and let’s not forget the star players like Raydium and Jupiter, which showed robust growth. Looks like SOL isn’t the only one throwing a party, just not the main event!
Traders’ Sentiments: A Bullish Parametric Stance
And now, let’s peek into the crystal ball of derivatives traders! If their funding rates are anything to go by, they’re still holding some bullish vibes for SOL. On October 8, it dipped slightly negative only to bounce back to neutral on October 9. A current fee of 0.01% every eight hours translates to a monthly fee of 0.9%. Not too shabby for traders who prefer riding the bullish wave.
To wrap it all up, while it looks like SOL is just taking some deep breaths and trying to catch its footing, the broader altcoin market is rolling along just fine. Whether it can swim back to $190 remains an exhilarating mystery!
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