Solana (SOL) Back in the Spotlight: Institutional Appeal and Bullish Momentum

Solana (SOL) is regaining investor confidence, particularly among institutional players. This recent surge has sparked bullish predictions for the asset, with some suggesting a potential extended rally.

Institutional Backing and Market Shift

Solana has consistently attracted institutional interest, and this continues to be a driving force behind its current upswing. The recent gains and change in market sentiment have fueled speculation of an upward trajectory for SOL, although some analysts remain cautious about reaching a new all-time high soon.

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For context, Solana reached its peak of $260 on November 6, 2021, fueled by the broader DeFi (decentralized finance) boom. Currently, SOL sits at $159.2, reflecting a 38% decline from its record high. However, recent positive flows have pushed the price past the $164 mark, despite intraday corrections.

Bullish Signs: Price, Volume, and On-Chain Activity

Solana is known for its ability to outperform the market during recovery periods. This recent uptick is characterized by a positive momentum in price, institutional flows, and on-chain activity. Over the past 24 hours, SOL has climbed 4%, reaching a market capitalization of $71.3 billion. The daily trading volume has also surged by 31% to $3.9 billion, with weekly flows reaching 8.35%.

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This sustained uptrend has translated to monthly gains exceeding 20%, igniting a wave of optimism within the Solana community. Furthermore, the total value locked (TVL) across DeFi platforms using Solana has witnessed a 7.83% increase to $4.42 billion. DeFi transaction volumes have also grown by $1.2 billion within the same period. Leading protocols like Jito, Marinade, and Kamino boast a TVL exceeding $1 billion each.

Memecoins and Rate Cuts: Potential Catalysts for Growth?

Some crypto enthusiasts believe that Solana has a knack for capturing market attention. In 2021, it rode the NFT (non-fungible token) wave, and in 2024, memecoins seem to be playing a similar role.

However, analysts remain divided on whether memecoins can propel SOL to a new all-time high in the near future, considering the current interest rate environment. Crypto bulls point to the recent surge in Solana memecoins (up 6.4% in the last 24 hours, with a market cap exceeding $7.5 billion) and a potential Federal Reserve rate cut as factors that could push SOL to a new resistance level.

The influx of new memecoins experiencing significant gains (as high as 50x in daily trading) adds fuel to the bullish projections. Additionally, a potential rate cut by the Fed could incentivize investors to move towards riskier assets like memecoins, further bolstering SOL’s value.

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