- Solana saw a 14% increase in TVL in the last 30 days.
- SOL was trading around $23 at the time of writing.
While Solana has been enjoying quiet days lately, the Total Value Locked (TVL) has been on an uphill journey as recent data shows. Could this gradual uptick in TVL trigger a cascade of improvements across the network and for the SOL token?
Read Solana’s [SOL] Price Forecast 2023-24
Solana sees an upward trend in TVL
In a recent post from Messari, TVL growth across prominent blockchain networks was analyzed. Among these networks, Solana stood out with a notable increase in TVL. The increase was in stark contrast to the losses other chains have suffered over the past month.
Vividly illustrated on the chart, Solana showed an impressive growth of over 14% in her TVL. In addition to Solana, only Optimism had a positive TVL of all chains examined.
Analysis of the Solana TVL
DefiLlamas data illustrated the trajectory of Solana’s TVL witnessed an increase in recent months. The chart painted a picture of the start of a significant upward journey around June 29.
Initially, the TVL was swinging in the $240 million to $260 million range. After its surge, however, it ventured into over $300 million territory, reaching a high of over $324 million on July 14.
Source: DefiLlama
At the time of writing, the TVL was around $308 million, up slightly after the initial dip from the high of the year to date. Additionally, an intriguing pattern emerged when the user base was analyzed.
Apart from peaks in May, the number of users on the platform has remained remarkably stable. The chart illustrated this steady trend, with the number of users showing a sustained balance without any discernible decline.
SOL bear trend is weakening
On the daily time chart, Solana’s journey, after rising 8% on July 26, has failed to follow a substantial trajectory. Instead, the chart reflected more of a decline than a revival.
At the time of writing, it was trading around $23.2, a modest increase of less than 1%. Despite the moderate price movement, SOL maintained its position above the short moving average (yellow line).
This was a testament to the momentum it gained from the uptrend seen a few weeks earlier.
Source: TradingView
– Realistic or not, here is the market cap of SOL in terms of BTC
Looking at the Relative Strength Index (RSI), the current phase for Solana showed a bearish trend. However, this bearish sentiment was relatively weak as the RSI line teetered slightly below the neutral line.