The Solana (SOL) Price Declines, but Interest in Solana Reaches Yearly Peak
The price of Solana (SOL) has dropped since reaching a high of $24.79 on October 2. On October 12, it hit a low of $21.79, erasing some of its gains from September.
Reasons for the Increase in Interest
The Total Value Locked (TVL) in the Solana network has reached a new yearly high of $337.49 million, despite the price decline. Julian Deschler, Co-founder of Elusiv, attributes this increase to several factors.
Elusiv is a universal encryption layer for Web3 that operates on the Solana blockchain. They recently introduced a feature that allows users to exchange assets privately using zero-knowledge proofs to encrypt public keys.
Deschler believes that the recent interest in Solana is due to the integration of Solana snap in Metamask, the introduction of Eclipse as an Ethereum L2 solution running on Solana’s Virtual Machine (SVM), a successful hackathon in India, and Maker’s plans to create a Solana-based chain.
Solana’s Technical Attributes and Foundation Support
Deschler also highlights Solana’s technical attributes, such as its high speed and low transaction costs, which make it attractive for developers. Additionally, Solana Foundation’s support and collaboration with Elusiv during a global hackathon have deepened their connection.
SOL Price Prediction: When Will the Decrease End?
An analysis of SOL’s daily time frame shows a breakout from a descending wedge pattern on September 15. However, SOL has failed to reach the $27 resistance area and has fallen since its high.
The daily Relative Strength Index (RSI) is turning bearish, indicating a downward trend. If SOL continues to decline, it may reach a descending resistance line that is 12% below the current price.
Hot Take: Solana’s TVL Increase Amidst Price Decline Highlights Growing Interest in the Blockchain
Despite the decrease in SOL’s price, the Total Value Locked (TVL) in the Solana network has reached a new yearly high. This suggests that there is growing interest and activity within the Solana blockchain ecosystem. Factors such as the integration of Solana snap in Metamask, the introduction of Eclipse as an Ethereum L2 solution running on Solana’s Virtual Machine (SVM), and Maker’s plans to create a Solana-based chain have contributed to this increased interest. Additionally, Solana’s technical attributes and support from the Solana Foundation make it an attractive choice for developers and projects like Elusiv. While the price may be experiencing fluctuations, the underlying growth and potential of Solana remain strong.
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