Why is Solana’s (SOL) price up today?
Solana’s current demand is being driven by a decline in Bitcoin market domination, strong expansion in Solana’s network, and new development updates. Solana’s SOL $137 price is up today, as the cryptocurrency market recovers from fears over Mt. Gox’s anticipated $9.40 billion in Bitcoin repayments. As of June 25, Solana’s price has risen to as high as $140, a 14% increase from its recent lows of $122, the lowest in five weeks.
Solana rally part of altcoin gains versus Bitcoin
Solana’s gains today come against Bitcoin’s diminishing crypto market dominance, indicating that traders are shifting their wealth from BTC to top-ranked altcoins.
Notably, the Bitcoin Dominance Index (BTC.D) fell 1.82% on June 25, marking its lowest daily performance since January. This decline came after the Mt. Gox trustee announced the reimbursement of 850,000 BTC to the impacted users of the crypto exchange’s catastrophic 2014 breach.
The market interpreted the Mt. Gox update as a sign of 850,000 BTC in possible sell-pressure arising in the coming weeks, prompting traders to turn their focus to altcoins, particularly the SOL/BTC pair, up 14.70% since the news. Interestingly, SOL experienced an increase in institutional interest even before the Mt.
Gox retribution update. According to CoinShares’ latest weekly report, Solana-based investment funds attracted a net positive inflow of $2.7 million in the week ending on June 21. In comparison, Bitcoin-based investment funds witnessed a massive $630 million in outflows, while Ethereum—Solana’s top layer-1 blockchain rival—saw $58.3 million leaving its funds.
Solana TVL highest since October 2022
Solana’s bullish momentum is matched by steady growth in network utilization, as indicated by rising total-value-locked (TVL) across its ecosystem.
As of June 25, Solana’s ecology had 31.11 million SOL in its coffers, the most since October 2022. This represents an astounding 300% growth in TVL this year and a remarkable 350% increase from the local low of about 9 million SOL in November 2023.
A greater TVL shows that more users and developers are actively participating in the Solana network, suggesting increased demand for the coin. It boosts investor confidence by demonstrating the network’s durability and expanding use, and it generates good sentiment, which often translates into more buying interest, driving the price upward.
Solana development updates
SOL’s pricing increase today comes after the release of two new capabilities that enable on-chain transactions throughout the Internet.
Solana has introduced “Blinks” (blockchain links), a tool that combines internet transactions by converting on-chain operations into shareable links.
Thus, users can initiate Solana transactions from any website or app that allows links to be shared. This functionality allows users to vote, donate, mint NFTs, swap tokens, and make payments directly through social media sites.
Furthermore, these Blinks can be shared through messaging apps and other internet platforms. Integrating blockchain transactions into regular internet activity is expected to expand Solana blockchain adoption, boosting demand for SOL.
SOL price bounces from support confluence
From a technical standpoint, today’s SOL price increases are part of a rebound that began after testing a support confluence near $130. This confluence consists of a 200-day exponential moving average (the red wave), a horizontal trendline, and an almost oversold daily relative strength index (RSI).SOL is now expecting a return to its 50-day EMA (the red wave) of roughly $150 by the end of June. A strong breach above $150 might propel the price above $200, close near Solana’s year-to-date high. However, the bears will attempt a significant break below the support confluence. This increases the likelihood of Solana prices falling below the psychological support level of $100 in July.
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