SOL Price Stagnates Despite Rising dApp Deposits: What’s Holding It Back?

SOL Price Stalled by ETF Setback Despite Network Growth

Since August 12, Solana’s native cryptocurrency, SOL, has failed to break over the $150 resistance level. Some network measures, however, have demonstrated strength. For example, the total deposits in its decentralized applications have increased to a level not seen since October 2022. Traders are now wondering what might be preventing the SOL price from rising to $190 and whether these enhancements to the network fundamentals are enough.

The recent action by Cboe Global Markets to remove 19b-4 forms for spot Solana ETFs from its website on August 16 is one factor contributing to investors’ lack of interest. According to several market participants—including financial attorney Scott Johnsson—the US Securities and Exchange Commission has reportedly declined the Solana ETF informally, which is in line with Chair Gary Gensler’s previous position.

• The demand for the SOL token has been significantly boosted by other blockchains’ memecoin debuts, which has caused Ethereum’s average costs to drop to roughly $1 for the first time since July 2020, according to cryptocurrency trader and investor CoinMamba.
• As a result, he believes that Solana’s attraction has diminished.

Solana TVL Hits 10-Month High: Is SOL Set for a Breakout?

The increasing total value locked (TVL) on the network indicates that there is still an opportunity for SOL’s price to rise, despite the fact that success is not guaranteed. After a 13.7% increase from the previous month, the total amount of SOL owned by Solana network DApps on August 22 reached 34.9 million, the most since October 2022. Also noteworthy is the fact that Solana has $5 billion in TVL in USD, more than its nearest rival BNB Chain, which has $4.5 billion.

• Although a rise in TVL is often a good indicator, since most DApps don’t require a sizable deposit base, it doesn’t always represent an increase in users or activity.
• To estimate the true number of users, the most accurate proxy is the count of distinct active addresses engaging with those programs.

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