Ethereum killer Solana hits $13.65 billion in TVL as SOL price locks in on $300

Solana price seems to be unaffected by Bitcoin as it set up a new all-time high on October 25, and so did the Total Value Locked (TVL) on the SOL ecosystem. With the altcoin currently retracing to a support zone, investors can expect another leg-up to kick-start a new uptrend.

Solana TVL goes through the roof

Solana has been a buzzing ecosystem with NFT projects, yield aggregators, liquidity mining and more. This massive ecosystem, which is set to rival Ethereum, has reached two new milestones, a new all-time high for Total Value Locked and the market value of SOL hitting a record high.

The top six projects on Solana have more than $1 billion in TVL. Saber leads the pack with $2.06 billion worth of SOL locked in its ecosystem.

Moreover, the Ethereum-killer narrative for Solana seems to be working out well, as plenty of projects have jumped ship. As a result, SOL has rallied a whopping 14,665% in 2021, reflecting the demand for an ETH alternative in the cryptocurrency space.

With Bitcoin slowing down, altcoins, especially Solana and a handful of other DeFi coins, are rallying. Moreover, Ignition saw 5,879 projects sign up for the 4th global hackathon on Solana. The prize pool is hovering around $5.1 million with a grand prize of $75,000 and famous faces in the cryptocurrency ecosystem like FTX founder and CEO Sam Bankman-Fried, Coinshares’ CSO Meltem Demirrors, Circle founder and CEO Jeremy Allaire and so on judging these projects.

SOL price prepares for lift-off

Solana price rose 43% from October 19 to October 25 and created a new all-time high at $219.27. This run-up was an explosive one with minor retracements. Therefore, investors can expect SOL to undergo a short-term corrective action before embarking on a new leg-up.

The support area ranging from $185.30 to $204.45 is where the pullback finds a cushion and receives enough buying pressure to reverse its trend. Assuming the reversal occurs here, SOL needs to flip the $216.91 resistance barrier into a support floor. Doing so will allow Solana price to take aim at the new all-time high at $238.67 or the 161.8% Fibonacci extension level.

In a highly bullish case, Solana price could extend its run-up to $301 after a 50% ascent to the 261.8% Fibonacci extension level.

SOL/USDT 6-hour chart

While things are looking good for Solana price, a breakdown of the demand zone ranging from $185.3 to $200.37 will be catastrophic. In this situation, SOL could retrace to the $175 support floor and, in dire cases, $151.05. While this downswing does not invalidate the bullish thesis, it will delay it.