21 December 2023
Solana (SOL) is flying high at the moment, and from all indications, the crypto token has no intention of slowing down anytime soon as it eyes $100. This is no doubt feasible, considering the several bullish narratives that continue to build up in the Solana ecosystem. Interestingly, SOL recently surpassed XRP to become the fifth-largest cryptocurrency by market cap.
Solana DeFi 2.0 Is No Joke
On December 16, the official X (formerly Twitter) account for Solana made a post where it stated that “Solana DeFi 2.0 is just getting started.” Indeed, SOL may be up to something as its DeFi ecosystem continues to garner steam. Data from DeFiLlama shows that Solana has been going head to head to Ethereum in terms of DEX volumes on the respective chains.
Solana recently surpassed Ethereum in 7-day DEX volume for the first time in history. SOL has seen about $9.03 Billion in trading volume across all the DEXs on the chain in the last seven days. At the same time, Ethereum saw $8.836 Billion. This is more impressive when you consider the fact that Ethereum houses the most prominent decentralized exchanges.
With such liquidity flowing into the ecosystem, it is only a matter of time before SolaSOLna hits $100. Data from DeFi Llama also shows that many are doubling their stakes in the Solana ecosystem. At the time of writing, the Total Value Locked (TVL) on Solana stands at $1.20 billion, its highest level since last year.
Much credit needs to be given to the protocols that continue to build on Solana. One of them happens to be the liquid staking protocol Jito, which has over $570 million locked on its protocol. The DeFi platform recently distributed $225 Million in airdrop to SOL users causing new money to flow into the ecosystem.
Is SOL Coming For Ethereum?
For a long time, Solana has been dubbed the “Ethereum Killer,” but that has never really materialized. The network has for a long time, suffered numerous outages, which made many assume that it could not match Ethereum. However, this time around, there is a growing belief that SOL is well-prepared to live up to the hype.
It is worth mentioning that the Solana network has been 100% uptime since the last time it recorded a network outage in February this year. This is also more commendable considering the surge in network activity that Solana has experienced in recent times.
If Solana is somehow able to put these outages in the past, there is no doubt that people could look to it as a better alternative to Ethereum. An increase in its utility will also undoubtedly increase SOL’s value.
ARK Invest’s CEO Cathie Wood recently praised how Solana is “doing a really good job.” She further alluded to the fact that SolaSOLna is even faster and more cost-effective than Ethereum.
At the time of writing, SOL is trading at around $86, up over 10% in the last 24 hours, according to data from CoinMarketCap.