The price of Solana’s native token SOL soared on October 25 after a market-wide rally led by Bitcoin, with Solana’s Total Value Locked (TVL) reaching a record high and SOL seeing a promising tech.

Bitcoin triggers market-wide rally

SOL is up more than 9% to hit an intraday high of around $ 214 and is up over 31% in the past week, pushing the price close to a record high of around $ 222 set in early September.

Bitcoin, which set a new ATH of $ 67,000 last week, pushed the total crypto market cap to over $ 2.5 trillion, a new milestone for the space.

SOL 4 Hour Price Chart | Source: Tradingview

This helped push the price of SOL higher, while competing coins ETH and BNB also gained 7.8% and 3.6% respectively over the past week.

TVL on Solana hits record high

SOL’s price movement coincided with the TVL of all DeFi projects built on top of the Solana blockchain and hit a new record high of $ 13.53 billion, according to data aggregation services. DeFi Lama.

Solanas TVL | Source: Defi Lama

The dominant DeFi project on the Solana blockchain is Saber, an automated market making protocol (AMM) that enables users and applications on Solana to efficiently trade between stable asset pairs and generate profits.

The protocol contributes $ 2.05 billion to Solana’s liquidity pool at press time.

There are now 4 other DeFi projects with TVL over $ 1 billion, including Raydium ($ 1.91 billion), Sunny ($ 1.73 billion), Serum ($ 1.69 billion) and Marinade Finance ($ 1.63 billion).

Solana too explain that they will have more DeFi projects after completing the “Ignition” hackathon on October 18th. Users will need SOL to use these applications and pay transaction fees, increasing the prospect of greater demand for Solana’s native token in the future.

SOL. Price technical analysis

The recent rally was part of a bullish pennant breakout move. This technical outlook could bring the SOL to a level equal to the maximum distance between the top and bottom trendlines of the pennant – around $ 85.

Daily chart of SOL / USD and pennant breakout | Source: TradingView

So if you add $ 85 to a breakout of $ 158, that would give a pennant target of $ 243 – which is close to $ 250. Meanwhile, retesting the pennant’s upper trendline as support risks weakening the bullish setup.

You can see the SOL prices here.

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Minh Anh

According to Cointelegraph

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