Solana’s Surge: Stablecoins and NFT Market Boom Amidst DeFi Growth
Crypto News – The Solana blockchain has recently experienced a significant increase in its stablecoin supply, primarily driven by Circle‘s USDC. This comes after SOL price faced a dramatic fall to $66 on Monday, December 11. However, it swiftly rebounded, showing a robust 10% recovery, with its trading price now hovering around $72. This bounce back is largely attributed to vigorous DeFi activities within the Solana ecosystem, which have contributed to a nearly fivefold increase in Solana’s price over the past two months.
A remarkable 20% upsurge in the stablecoin supply on SOL has been reported by DeFiLlama. In just the past week, the total supply of stablecoins on the blockchain escalated by 8%, reaching $1.676 billion. USDC, the second-largest stablecoin on Solana, saw a noteworthy growth of 20%, pushing its total to $735 million. Interestingly, the supply of USDT has not shown significant changes. Alongside this, SOL itself has seen an impressive value increase of over 20% in the same timeframe.
As of the latest update, SOL price stands at $71.16, with a market capitalization of $30.3 billion. It has maintained a strong position above the $66 mark, buoyed by a significant bullish trend line on the 4-hour chart against the USD. This trend line meets the 50% Fibonacci retracement level, coinciding with the rise from a low of $53.50 to a high of $77.72. The first resistance level is at $72.00, with a more considerable challenge at $75.00.
Currently, the primary resistance level is at $78. If SOL successfully breaks through this barrier, it could be indicative of a more extensive upward trend. Future resistance levels are expected near $82.50 and $86.52. However, should SOL struggle to exceed the $72.00 mark, it may face downward pressure.
Support levels are anticipated at around $68.00, with the main support situated at $65.00, aligning with the trend line. A drop below this could lead to a decrease towards $62, and a further fall under this mark might prompt a decline to the $55 support zone in the short term.
In the realm of DeFi and NFTs, Solana is making significant strides. According to DeFiLlama, Solana’s Total Value Locked (TVL) is now at $912.62 million, accounting for nearly 3% of Ethereum’s TVL. The increase in Solana’s TVL over the past six months can be attributed to the launch of new DeFi projects on the platform and a series of airdrops within the SOL ecosystem.
Solana analyst and researcher @0xGumshoe has highlighted that SOL exhibits greater capital efficiency than Ethereum. Despite Ethereum’s higher TVL compared to other chains, SOL is responsible for an astonishing 70% of Ethereum’s Decentralized Exchange (DEX) volume.
Recent shifts in the NFT sales landscape have been particularly noteworthy. While Ethereum has traditionally dominated the NFT market, recent data shows a significant uptick for Solana. Ethereum’s NFT sales have dropped to $11.4 million, in stark contrast to Solana’s rising sales, which are nearing $16 million.
The Solana NFT marketplace is experiencing heightened activity, with Tensor emerging as a key player. The platform has reached a monthly trading volume of around $1 million, surpassing Magic Eden. Tensor now holds a dominant position, accounting for about 60% of Solana’s total NFT market share.
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