Connect with us
Active Currencies 14281
Market Cap $2,483,630,814,289.90
Bitcoin Share 51.95%
24h Market Cap Change $-1.03

Solana’s TVL surges: Will the momentum last?

2min Read

SOL just had its most bullish week since mid-July, with a 29% upside in the last seven days and a 39.08% rise from its lowest price point in September.

Solana's TVL surges: Will the momentum last?

Share this article

  • Solana’s TVL was finally growing at press time, but it was still miles away from its previous historic high.
  • The TVL could be an indication of SOL’s upcoming bull run.

Solana’s [SOL] Total Value Locked has been a significant concern of late, especially for investors, judging by its hard fall from its 2021 peak. However, the latest data indicated that the TVL was once again experiencing positive growth, as of 30 September.


Is your portfolio green? Check out the SOL Profit Calculator


To put things into perspective, Solana’s TVL peaked at just over $10 billion in November 2021 before entering free fall. It bottomed out at $210 million in January 2023. However, it has since then been recovering and recently peaked above $327 million.

This meant its TVL was up by roughly $116 million on a YTD basis – confirmation that it was back to positive growth.

While the TVL’s recovery is significant so far, it pales in comparison to how much it has tanked from its 2021 peak. The chart below demonstrated the extent of the downside.

Solana TVL

Source: Solana TVL

Solana’s TVL outflows since November 2021 reflected the bearish state of the market. Does this mean that TVL will recover during the next bull market? While that is not necessarily a guarantee, it will likely be the outcome during the bull market.

Interestingly, the press time TVL recovery aligned with existing bullish conditions.

SOL bull flex alongside the TVL growth

SOL just achieved its most bullish week since mid-July. It achieved a 29% upside in the last seven days and 39.08% from its lowest price point in September. Its $23.12 press time price represented a 65% gain from its lowest 2023 price level.

SOL price action

Source: Tradingview

Based on the price performance, we can see that SOL’s price recovery had some correlation with TVL growth in 2023. The TVL growth in the last week of September could be associated with the price surge.

However, ongoing development activity in pursuit of growth could be responsible for growing confidence in the Solana community.


Read Solana’s [SOL] Price Prediction 2023-24


Solana’s on-chain data further revealed that Development Activity has been steadily growing since it hit a monthly low on 12 September, and also hit a new low in the last 24 hours.

Moreover, the Weighted Sentiment metric maintained close to its lowest levels in the last four weeks, indicating that SOL was still far from peak investor confidence.

Solana development activity and weighted sentiment

Source: Santiment

Share

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.