Solana (SOL) Records Positive Moves As Bears Took Control, What’s Pushing It?
July 27 2023 - 2:00PM
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The crypto market witnessed heightened volatility last week, with
most coins observing steep declines. However, today, June 27,
the market has registered a slight recovery as most coins posted a
few gains, but SOL’s gain is the most notable among all.
Solana’s native token, SOL, recorded over 3% price growth over the
past 24 hours, while others, like Bitcoin, barely crossed 1%, given
the significant increase. The Ethereum killer is now number 9 among
the top-gaining coins today. However, considering the steep
volatility index, whether SOL bulls can sustain today’s rally
remains uncertain. SOL Price Outlook Solana saw bearish days in
June after the SEC listed it among tokens labeled as securities in
its lawsuit against Binance and Coinbase. SOL’s price
nosedived, dropping over 41% between June 3 and June 16. The
asset’s price consolidated between $15 and $19 until July.
Related Reading: Shibarium Bridge Goes Live In Beta But There’s A
Catch However, SOL reached a monthly high of $29.31 on July 13
after news of Ripple’s win against the US SEC in the multi-year
lawsuit circulated throughout the industry. Although the
bearish momentum observed in the last seven days snatched some
gains from the asset, its 30-day price movement remains bullish,
with over 52% price growth. Solana has lost 2.33% of its market
valuation over the past seven days before rebounding with notable
gains today. On Thurdsay morning, SOL traded at $25.25, with a
3.71% 24-hour price increase. SOL-Based Investment Funds Skyrockets
Following Heightened Regulatory Optimism SOL’s trading volume has
increased in the last 24 hours. On July 26, SOL recorded a 57.07%
increase in trading volume. This growth in trading activity
suggests increased interest in SOL and SOL-related products.
Following Ripple’s partial victory in the SEC’s securities lawsuit,
Solana-based investment products have received massive attention
from investors. According to CCData’s digital asset management
review, Solana-based investment funds’ assets under management
(AUM) increased in July. The report showed that most of the boost
happened on July 14, a day after Judge Torres ruled that XRP token
sales on the secondary market are not investment contracts. Judge
Torres’ ruling acted as a point of reference to other assets,
including SOL, marked as securities by the SEC. CCData’s report
stated that the AUM for SOL-based investment products increased by
55.7% to $87.8 million in July. This observation could be
attributed to SOL’s impressive performance over the past month.
Solana DeFi Activity On Bullish Recovery Regulatory uncertainty and
the FTX fiasco affected the sentiment around Solana-based dApps,
dipping further into the Solana DeFi ecosystem. DeFi Llama
data shows that Solana’s total value Locked (TVL) crumbled from a
peak of $9.66 billion in November 2021 to less than $300 million in
2023. But with the partial resolution and the heightened optimism
for a clearer regulatory atmosphere, Solana DeFi’s activities have
improved. Related Reading: Is Arbitrum Promise Fading?
Downtime, Metrics Decline Raise ARB Price Alarms As of July 14, SOL
TVL hit a yearly peak of approximately $1.1 billion before
retracing to $313.9 million. A close look at the chart shows SOL
TVL has witnessed a slight increase and now stands at $316
million. Chances that SOL will see a more bullish rebound
following a total resolution of ongoing regulatory issues are high.
Featured image from Pixabay and chart from TradingView.com
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