- Solana (SOL) has made an incredible surge to $157 after surging by 7% in the last 24 hours and 2% in the last seven days.
- Analysts have found that this significant move was triggered by rising Institutional interest and the launch of Bybit’s Decentralised Exchange on Solana.
Solana (SOL) has strongly reversed its bearish trend to “print” 7% gains on its 24-hour price chart, moving from $144 to $157 within the period.
According to our market data, this impressive move is supported by the growing traders’ confidence as the daily trading volume surges by a whopping 98% to $4.5 billion.
The current trend has also overturned the losses recorded on the weekly chart, flipping to a 2% gain to extend the 90-day gains to 24%. Fascinatingly, analysts believe that this incredible upsurge is not a fluke. According to them, SOL’s growth was likely fueled by two main factors: Bybit’s Solana-based DEX and rising adoption.
Bybit’s Solana-Based DEX
Bybit has just unveiled a decentralised exchange (Byreal) that will launch on the Solana mainnet in the third quarter of the year. As mentioned in our previous news brief, the testnet would be launched on June 30.
According to analysts, this has significantly contributed to the surge of the SOL price and could lead to a retesting of the monthly peak of $187.
Bybit’s co-founder Ben Zhou has explained that Byreal would compete for a massive share in the $20.3 billion DEX industry with an advancement of routine systems like the “Request for Quote (RFQ) and Concentrated Liquidity Market Maker (CLMM) protocols”. This would ensure that slippage remains low coupled with MEV protection.
Currently, Uniswap remains the leading DEX platform with a 24% control of the market share. Raydium has also established itself as the leader of the Solana ecosystem with a Total Value Locked (TVL) of $1.7 billion. Raydium has a market share of 55%.
Rising SOL Adoption
The price of SOL is also reported to be influenced by the rising Institutional adoption led by a Hong Kong-based company, MemeStrategy, which has spent $369,442 to buy 2,440 SOL. Similarly, DeFi Development Corp has announced its plans to invest in the asset. As featured in our recent coverage, the company has currently announced a 5 billion equity line of credit (ELOC) via a collaboration with RK Capital Management to complete this move.
Reacting to these, SOL has made a huge turn on its price chart after forming a double bottom reversal pattern from a support level of $140. From the current level, analysts have indicated that SOL could surge to $168. A decisive move above this level could send SOL to $180-$190. In a more realistic estimate, the asset has been predicted to make a short-term run to $174.
Speaking on the long-term estimate, an analyst called Crypto Curb has hinted that the price could enter the $2000 level.
As reviewed in our recent publication, this could be easily achieved once SOL reaches the $0.6 trillion market cap recorded by Ethereum (ETH) in the previous cycle. As also explained in our last analysis, renowned trader Ali Martinez has predicted that SOL could hit $4000 in the long term.
