Solana’s Total Value Locked (TVL) Surges to Almost $340 Million
Solana has seen a significant increase in its Total Value Locked (TVL), reaching nearly $340 million on Monday, as reported by Defi Llama. In the past 24 hours alone, Solana’s TVL has grown by over 4%. Additionally, Solana’s native token, SOL, has experienced a strong week, with a 29% increase since September.
Positive News Boosts SOL
SOL received a boost from the news that a U.S. government shutdown had been avoided. This led to a 14% increase in price on Sunday, and SOL is currently consolidating at resistance levels around $24.20.
Concerns About FTX Selling
Despite the recent recovery, there are concerns about the potential impact of the FTX estate liquidating its crypto holdings on SOL’s price. The estate reportedly holds around $1.2 billion in SOL, with 22 million unlocked tokens worth approximately $400 million available for sale. This represents nearly 4% of SOL’s total supply. Additionally, there are an additional 40 million to 44 million staked tokens and $17 million worth of SOL tokens expected to be unlocked monthly for the next four years.
Resistance Levels and Market Potential
Solana faces the challenge of breaking through resistance barriers at $26 and potentially reaching $30. However, even with potential token selling pressure, both Bitcoin and Ethereum have managed to sustain their bullish momentum. Solana is considered one of Ethereum’s top competitors, and if the market continues to grow, there is a good chance of gains for this undervalued asset.
Hot Take: Solana’s TVL Soars, but FTX Selling Looms
Solana’s Total Value Locked has experienced a significant surge, indicating growing interest and confidence in the platform. The recent positive news and price increase of SOL have contributed to this success. However, the potential impact of the FTX estate selling its SOL tokens raises concerns about future price performance. Solana will need to overcome resistance barriers and navigate through potential selling pressure to maintain its upward trajectory. Nevertheless, Solana remains a strong contender in the crypto market, poised to capitalize on its competition with Ethereum and potentially generate substantial gains.
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