Solana
Solana’s DeFi Activity Could Be Good News for SOL Price – Here’s Why
- Activity on the Solana blockchain increased, but the price of SOL fell
- The correlation between SOL and BTC decreased as indicators revealed that SOL could fall below $160.
Unique Active Wallets (UAW) on Solana [SOL] has seen an incredible increase in the last 24 hours, according to DappRadar. Decentralized applications, including Jupiter, Raydium, and Magic Eden, have contributed to the aforementioned boom.
AMBCrypto found that UAWs on aggregator Jupiter Exchange numbered 307,100, representing an increase of 251%. For Raydium, this is a slight increase to 285,200 as NFT activity has picked up. Finally, the same increased up to 178% on Magic Eden.
Memecoins make SOL rise and fall
The increase in activity on Raydium and Jupiter could be linked to the increase in memecoin activity in the market. A assessment platforms have revealed that the memecoin’s vibrant narrative can be attributed to GameStop (GME) and legendary trader Keith Gill, popularly known as “Roaring Kitty.”
On June 7, derivative tokens linked to the trader appeared in large numbers. Furthermore, these Solana-based tokens have reached staggering market capitalizations in a short time.
This rise also indicated an increase in demand for SOL. However, at press time, Solana price was valued at $162.44, representing a decline of 5.44% in the last 24 hours.
Here it is also worth noting that AMBCrypto found the reason why SOL could not sustain a rise, despite an increase in demand.
For many degenerates, the idea of buying a memecoin won’t last long. In crypto, a degenerate refers to an individual who engages in trading highly volatile and speculative tokens without fundamentals. So when the tokens reach a certain level of gain, they exchange it for the native Solana token and sell it for a stablecoin or fiat.
Recently, there have been a plethora of such pumps and discharges, and it may not stop anytime soon. If this were the case, SOL could continue to move sideways.
Can the token bet on BTC?
AMBCrypto also found that SOL’s one-day volatility jumped. Volatility tracks how quickly the price can fluctuate. So, if selling pressure increases amid high volatility, the token could fall on the charts.
On the other hand, an increase in buying pressure accompanied by high volatility could trigger a price breakout. However, from the looks of it, SOL could fall below $160 in the near term.
Solana decouples from Bitcoin
Another factor that could affect the price is Bitcoin [BTC]. According to Santiment data, Solana correlation has been falling since June 6, indicating that the respective price might not always move in the same direction.
Therefore, if BTC rises above $71,000 again, there is no guarantee that SOL will return to $187. However, if the market recovery is more widespread, prices could follow a similar trajectory.
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Regardless of which direction SOL takes, the cryptocurrency is unlikely to reach $200 next week. In the long term, there is predictions this SOL could reach $1,000. For this to happen, the market situation must improve.