Solana price begins recovery surpassing trade volume of competitors Ethereum, Arbitrum and Polygon


  • Solana network witnessed a spike in decentralized exchange volume, over the past week. 
  • The Ethereum-killer network lags behind its competitors in terms of daily activity, however DEXes have noted a spike. 
  • SOL price yielded nearly 5% gains for holders since Friday, kick starting the altcoin’s recovery. 

Solana network lagged behind its competitors in terms of on-chain activity while trade volume on decentralized exchanges fuels a bullish thesis for SOL. The altcoin started its price recovery yielding nearly 5% gains overnight. 

Also read: Bitcoin and Ethereum rolling correlation declined below 80% first time in 18 months, what this means

Rising DEX volumes act as catalysts for Solana

Ethereum-killer Solana notably lags behind its competitor Ethereum, Arbitrum and Polygon, in terms of daily on-chain activity. However, there has been a consistent rise in the volume of decentralized exchanges on the SOL blockchain. 

DEX volume

DEX volume

Acting as a bullish catalyst, spike in DEX trade volume fuels a thesis for SOL price recovery. Solana could now compete with other protocols in the DeFi sector. 

The spike in volumes of decentralized exchanges is likely attributed to the growth of Automated Market Maker (AMM) Raydium and its on-chain order book. Raydium witnessed an 85% spike in the number of unique wallet addresses on its network and volume of transactions climbed nearly 150% over the past week. 

Interestingly, Solana price recovered from its recent pullback and yielded 5% gains to holders overnight. 

Where is Solana price headed next

Solana is currently in an uptrend that started in the beginning of 2023. The Ethereum-killer altcoin is tackling resistance at 10-day Exponential Moving Average at $21.21, while 50 and 200-day EMAs act as immediate resistances. 

In its recovery SOL price could tackle resistances at $27.97 and $30.72. 

SOL/USD 1D price chart

SOL/USD 1D price chart 

If Solana price nosedives below the 38.2% Fibonacci level at $19.86, it could plummet lower to support at 23.6% at $15.37. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Google, Apple could remove Binance from their app store on Philippines SEC request

Google, Apple could remove Binance from their app store on Philippines SEC request

The Philippines SEC has requested Google and Apple to remove applications controlled by Binance from their App stores. The exchange’s Philippines-based users are finding the exchange inaccessible to remove their funds. 

More Binance News

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

XRP rallies as Ripple slams SEC for penalties, asks regulator to establish likelihood of future violations

Ripple filed its response to the SEC lawsuit on Monday, arguing that XRP institutional sales before and after the court ruling show no disregard for the law. The firm asks for a civil penalty of no more than $10 million against the $2 billion requested by the SEC.

More Ripple News

Here’s why Ondo price hit new ATH amid bearish market outlook Premium

Here’s why Ondo price hit new ATH amid bearish market outlook

Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.

More Cryptocurrencies News

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

PENDLE price soars 10% after Arthur Hayes’ optimism on Pendle derivative exchange

Pendle price is among the top performers in the cryptocurrency market today, posting double-digit gains. Its peers in the altcoin space are not as forthcoming even as the market enjoys bullish sentiment inspired by Bitcoin (BTC) price.

More Cryptocurrencies News

Bitcoin: BTC post-halving rally could be partially priced in Premium

Bitcoin: BTC post-halving rally could be partially priced in

Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days? 

Read full analysis

BTC

ETH

XRP