Solana (SOL) sees positive moves amid bearish control. What’s driving it?

Solana (SOL) sees positive moves amid bearish control. What's driving it?

The Blockchain Industry: SOL Leads Recovery, SOL-Based Investment Funds Skyrocket, and Solana DeFi Activities Show Bullish Recovery

The cryptocurrency market experienced significant volatility last week, with most coins seeing steep declines. However, today, June 27, the market has shown a slight recovery, with several coins posting gains. Notably, Solana’s native token, SOL, recorded over 3% price growth in the past 24 hours, making it the most notable gainer among all coins. While other major cryptocurrencies like Bitcoin only managed a slight increase of 1%, SOL stands out with its significant gain. It currently ranks as the 9th top-gaining coin for the day. However, given the steep volatility, it remains uncertain whether SOL bulls can sustain today’s rally.

SOL Price Outlook

The recent period has been both challenging and promising for Solana. In June, the U.S. Securities and Exchange Commission (SEC) included SOL among tokens labeled as securities in its lawsuit against Binance and Coinbase. As a result, SOL’s price experienced a sharp decline, dropping over 41% between June 3 and June 16. The asset’s price then consolidated within the range of $15 and $19 until July.

However, on July 13, SOL reached a monthly high of $29.31 after the news broke of Ripple’s win against the SEC in the multi-year lawsuit. This development had a positive impact on the industry, including Solana.

Despite the recent bearish momentum that resulted in some losses for SOL over the past seven days, its 30-day price movement remains bullish, with a significant growth rate of over 52%.

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Solana saw a 2.33% loss in market valuation during the past week, but it rebounded today with notable gains. As of Thursday morning, SOL traded at $25.25, reflecting a 3.71% 24-hour price increase.

SOL-Based Investment Funds Skyrocket Following Heightened Regulatory Optimism

The trading volume of SOL has increased significantly in the past 24 hours. On July 26, SOL experienced a 57.07% increase in trading volume, suggesting increased interest in SOL and SOL-related products.

Following Ripple’s partial victory in the SEC’s securities lawsuit, Solana-based investment products have garnered massive attention from investors. According to CCData’s digital asset management review, assets under management (AUM) for Solana-based investment funds experienced a substantial increase in July.

The report highlights that most of the boost occurred on July 14, a day after Judge Torres ruled that XRP token sales on the secondary market are not considered investment contracts. This ruling acted as a point of reference for other assets, including SOL, which were labeled as securities by the SEC.

CCData’s report indicates that the AUM for SOL-based investment products increased by 55.7% to reach $87.8 million in July. This tremendous growth can be attributed to SOL’s impressive performance over the past month.

Solana DeFi Activities on a Bullish Recovery

Uncertainties surrounding regulations and the FTX fiasco have affected sentiment regarding Solana-based decentralized finance (DeFi) applications, resulting in a decline in the Solana DeFi ecosystem.

Data from DeFi Llama reveals that Solana’s total value locked (TVL) decreased from a peak of $9.66 billion in November 2021 to less than $300 million in 2023. However, with the partial resolution of regulatory issues and growing optimism for a clearer regulatory atmosphere, Solana DeFi activities have started to show signs of improvement.

As of July 14, SOL TVL reached a yearly peak of approximately $1.1 billion before retracing to $313.9 million. The chart indicates a slight increase, with SOL TVL currently standing at $316 million.

Given the potential for a complete resolution of ongoing regulatory issues, there is a high chance that SOL will experience a more bullish rebound in the future.

In summary, the blockchain industry, represented by Solana and its native token SOL, has demonstrated resilience amid market volatility. SOL’s recent price growth, along with the heightened interest in SOL-based investment funds and the recovery of Solana DeFi activities, highlights the industry’s potential for future growth and innovation. However, it is crucial to monitor regulatory developments and market conditions to accurately assess the industry’s trajectory.