Solana’s SOL (SOL) coin price is expected to end July with a 30% monthly return and is likely to challenge its yearly high of $210 in the coming weeks.
While most of the community attributes SOL’s success to Solana’s memecoin frenzy, the network’s robust liquid staking ecosystem is emerging as a compelling on-chain narrative. Let’s take a look at how this current trend is developing on the Solana network.
Liquid Staking Tokens Are Leading Solana DeFi
Cointelegraph recently highlighted that Solana’s total value locked (TVL) has increased by 10% to $5.42 billion, resulting in increased trading volume and increased on-chain activity.
Jito and Marinade, Solana’s liquid staking projects, are leading protocols, recording 40% and 30% TVL increases respectively in the past month.
Liquid staking is a process that combines the positive aspects of staking and liquidity. Holders can stake tokens in a smart contract or staking pool and receive tokens representing the staked SOL.
These tokens are called Liquid Staking Tokens (LST) and can be used to yield from other protocols or be utilized in decentralized finance applications. For Jito and Marinade, these tokens are JitoSOL and mSOL respectively.
According to data from Dune Analytics, the total amount of SOL deposited in liquid staking derivatives has more than doubled in 2024. Staked LST has increased from 163,827 to 807,712, a 393% increase between June 1 and July 26.
Data analytics platform Token Terminal also suggests that Solana’s daily and weekly active users have increased by 21% and 59%, respectively. The increase in active users coincides with the TVL growth of Jito and Marinade, as highlighted above. Therefore, we can infer that Mimecoin is not the only sector currently driving users to the Solana network.
Will SOL hit a new yearly high this week?
The price action of SOL is showing bullish momentum, and the community expects the price to retest the yearly high of $210. At the time of publication, SOL broke out of a bullish double bottom pattern, and the current overhead resistance is $202.
Overhead resistance is quite weak, and a retest of the yearly high is likely. However, Solana is currently witnessing a correction, falling below the $190 mark.
If Solana continues its bullish trend, the immediate retest target will be in the $200-$210 range. Conversely, if it loses the immediate support area of $180, the altcoin could retest its previous swing low of $165.
Meanwhile, options trader Trader Wick is bullish, saying SOL/USD is once again leading the crypto market rally.
“Solana is rebounding as usual,” he noted.
“Now we are breaking out of resistance in a breakout arrow setup that usually starts a new trend.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.