Solana (SOL) briefly crossed the $200 mark on Sunday night, marking only the second time it has reached this threshold since 2021. This follows Solana decentralized exchange (DEX) volume recently overtaking the volume observed on Ethereum (ETH) DEXs.
The rally was short-lived, as the cryptocurrency retreated to around $190 on Monday. To set a new all-time high, Solana would need to climb to approximately $260, according to data from CoinGecko.
After months of stagnation following the collapse of FTX, Solana’s ecosystem has seen a resurgence in interest, driven by airdrops and memecoin speculation. The cross-chain messaging protocol Wormhole is set to release its W token, with a portion of the supply unlocking on the Solana blockchain. This anticipated airdrop has contributed to the increased activity on the network.
Airdrop allocation farming has played a role in the steady growth of Solana’s DeFi ecosystem. The total value locked in Solana’s DeFi protocols has been on an upward trajectory since mid-November, currently sitting at around $4.6 billion, as reported by DeFiLlama.
Solana has also experienced a significant increase in stablecoin volume, processing more than $100 billion in USDT and USDC transfers on multiple days last week, according to data from Blockworks Research.
Memecoins have become the latest trend in the Solana ecosystem, with platforms like DEX Screener enabling users to speculate on new tokens such as Slerf. This phenomenon has sparked a debate within the crypto community, with influential figures like Ethereum co-founder Vitalik Buterin weighing in on the purpose and potential of memecoins.
Institutional interest in Solana rising
Institutional interest in Solana has also been on the rise. Grayscale’s Solana Trust (GSOL) has seen its market price climb for three consecutive weeks, with its net asset value per share nearing its highest point since the product began trading in April 2023.
Grayscale has also included Solana in its recently launched staking fund, which aims to optimize staking rewards for investors. Other firms, such as 21Shares and VanEck, offer exchange-traded products that provide exposure to the Solana ecosystem.
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