The price of Solana has exceeded $205, marking an 18% increase in less than two days. Despite a retreat below this psychological level, the asset outperformed the broader market.
The cryptocurrency market has entered a correction phase. Solana’s price has dropped to $192.
Network Activity on the Rise
Over the past 30 days, the number of transactions on Solana has increased by 45%. Network fees have also risen by 45% during the same period, indicating a surge in on-chain activity that supports the asset’s price.
In contrast, the BNB Chain network saw a 36% decline in transactions over the month.
Traders Exercise Caution
Data on perpetual futures for SOL reveals restrained optimism. The funding rate stands at 12% per annum, a borderline figure between neutral and bullish sentiment.
Decline in DEX Activity
Activity on decentralized exchanges within the Solana ecosystem has been declining for the third consecutive week, according to Defi Llama. Over the past 30 days, trading volume reached $113.14 billion.
Launched in July, the Solana-based staking ETF — REX-Osprey Solana Staking ETF attracted $161 million. In comparison, spot Ethereum ETFs set a record for monthly capital inflow in July, reaching a record $5.4 billion.
At the time of writing, the “people’s cryptocurrency” is trading at $204.59, according to CoinGecko. The daily increase is 3.1%, and the monthly gain is 28.1%. It remains approximately 43% below the ATH of $293.31 reached on January 19.
A sustainable rally requires an influx of retail and institutional capital. The absence of excessive leverage in the market could be a positive factor for smoother growth.
On August 13, Solana’s price rose above $200 for the first time since July.