Solana Approaches Yearly High After 27% July Gain with Forming Double Bottom Pattern

Solana’s on-chain activity is surging as its liquid staking tokens contribute to a Total Value Locked (TVL) surpassing $5.5 billion.

Source: vi.money

SOL is set to close July with a 30% monthly return and is gearing up to test its yearly high of approximately $210 in the coming weeks. While many in the community credit SOL’s recent success to the excitement surrounding Solana’s memecoins, the network’s thriving liquid staking ecosystem is emerging as a compelling narrative. Let’s explore how this trend is unfolding on the Solana network.

Liquid Staking Tokens Are Driving The Growth Of Solana's DeFi Sector

Recent data shows that Solana’s Total Value Locked (TVL) surged by 10%, reaching $5.42 billion, which has led to increased transaction volumes and heightened on chain activity. Liquid staking projects such as Jito and Marinade have been at the forefront of this growth, with their TVL rising by 40% and 30%, respectively, over the past month. Liquid staking combines the benefits of staking with liquidity. By staking tokens in a smart contract or staking pool, holders receive a token that represents their staked SOL. These tokens, known as liquid staking tokens (LSTs), can be used to earn yields on other protocols or within decentralized finance (DeFi) applications. For Jito and Marinade, these tokens are JitoSOL and mSOL, respectively.

Data from Dune Analytics reveals that the amount of SOL deposited in liquid staking derivatives more than doubled in 2024. Staked LSTs increased from 163,827 to 807,712, marking a 393% rise between June 1 and July 26. Token Terminal’s analytics also indicate that Solana’s daily and weekly active users have risen by 21% and 59%, respectively. This increase in active users aligns with the growing TVL for Jito and Marinade, suggesting that the rise in Solana’s network activity is not solely driven by memecoins.

SOL Price Prediction This Week

SOL’s price action shows strong bullish momentum, with the community anticipating a retest of its yearly high at $210. At the time of publication, SOL had broken through a bullish double-bottom pattern, with current overhead resistance at $202. The overhead resistance appears relatively weak, indicating a high probability of a yearly high retest. However, Solana is currently undergoing a correction, falling below the $190 mark. If Solana continues its bullish trend, its immediate retest target remains in the $200–$210 range. Conversely, if it loses support at $180, the altcoin may retest its previous swing low price at $165.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.