Solana price hits a new 2023 high — What’s behind the SOL rally?
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Solana’s native token, SOL (
On the one hand, SOL token bulls benefit from the increased network activity and higher TVL. On the other hand, Solana’s current market capitalization of $22.8 billion has surpassed Polygon’s $7.8 billion by nearly threefold, despite both networks having comparable DeFi TVL. This has prompted investors to question the sustainability of SOL’s bull run above $54.
Additionally, Solana protocol’s accumulated 30-day fees amounted to $1.9 million, compared to Polygon’s $1.6 million, according to DefiLlama. However, these figures pale compared to BNB Chain’s $9.1 million, raising doubts about the valuation after SOL’s recent rally.
As of now, there is no evident reason to bet against the trend, as there is no excessive leverage demand observed in SOL derivatives contracts. Nevertheless, the fundamentals hint at limited room for further upside.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
