Solana’s Aboriginal Token SOL (SOL) decreased 9% between March 28 and April 4, but some major indicators increased during the same period. Despite the drop in prices of SOL, the Solana network continues to surpass competitors, ranking second in deposits and trading volume. Traders are now wondering how long the price of SOL will reflect this onChain intensity.
Solana surpasses tvL sediment and rivals of DEX volume.
Investors’ interest in SOL is related to 1,79 million soles of the steaking lock on April 4, exceeding $ 200 million. This token occurred in April 2021 when the SOL was about $ 23, so the sales pressure is clear. Another factor is a decrease in Memecoins, which was the main cause of new user adoption in Solana. Less speculative inflow may not be converted into an immediate price increase.
Several meme -themed cryptocurrencies, including WiF, Pengu, POPCAT, AI16Z, BOME and ACT, have seen a decrease of more than 20% over the last seven days. However, despite the deterioration of the market situation, the Solana network was better than some competitors. The total value lock (TVL) has risen to the highest level since June 2022, while the distributed exchange (DEX) volume showed remarkable elasticity.
Solana Total Vale Locked (tvL), SOL. Source: Defillama
The deposits of Solana Network’s DAPP rose to 53.8 million soles on April 2, up 14% from the previous month. In the US dollar, a total of $ 6.5 billion is $ 770 million than the nearest competitor, BNB Chain. The best DApps of Solana on TVL include Liquid Stacking (JITO), Jupiter (DEX) and Kamino (loan and fluid platform).
SOLANA supports extensions despite MEV concerns and focuses on Web3
Although it is not a direct threat to Ethereum’s $ 50 billion, Solana’s Onchain data shows that it is more elastic than Ethereum Layer-2 networks such as BNB chains, Tron and Base and Arbitrum. According to DEFILLAMA’s data, Solana has a 24%market share, while Solana has a 24%market share, while BNB chains account for 12%and the basics account for 10%.
Dex volume monthly market share. Source: Defillama
Ether Lee Rium regained the lead from Dex volume, but Solana showed powerful elasticity depending on Memecoin Bubble Burst. In the context, Raydium’s weekly volume decreased by 95% from $ 42.9 billion in mid -January. Nevertheless, Solana has shown that traders focus on the basic layer scalability and integrated Web3 user experience despite continuous criticism associated with maximum extractable values (MEVs).
Source: x/CBB0FE
In short, MEVs occur when the validity test machine rearranges transactions for profit. This practice is not unique to Solana, but some market participants, such as the user CBB0FE, a self -declared defi liquidity provider, raised concerns about the internal gatekeeping. It is not directly mentioned, but criticism is that the incentives provided by Solana Labs can offset the high investment and maintenance costs required by a specific validation test.
Supporters who have changed the token discharge of Solana argue that the rewards obtained through MEVs already provides sufficient incentives to the validator to secure the network, so that no additional inflation pressure on the SOL is not needed. Meanwhile, Loring Harkness, a key contributor to the shutter network, advocates transactions before entering Mempool to prevent the validity tester from manipulating spells.
The growth of Solana’s TVL and the elasticity of the DEX market share may not be enough to resume the $ 200 level that SOL can see in mid -February. However, as a major platform for distributed applications supported by consistent activities, infrastructure development and increased interest in developers and users, we have secured the second place of Ethereum.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.