Solana (SOL) price is meeting resistance again near its all-time high, but solid fundamentals and impressive growth in the decentralized finance ecosystem (DeFi) and non-fungible token (NFT) have the potential to add that altcoin above $ 250 bring before the end of the year.
Institutional interest may be the main driver of Solana’s impressive 490% gain since August, with SOL’s Bitwise 10 Cryptocurrency Index Fund component ($ BITW) being the fourth-largest, collectively, over-the-counter market instrument valued at $ 1.3 billion. Dollar.
Traders should keep in mind that the event is not necessarily positive as futures contracts require both a buyer (buy) and a seller (sell). However, the growing interest allowed even more players to participate.
DeFi is gaining traction
Solana’s two best-known decentralized finance projects are decentralized exchanges with built-in profit-making programs, and they have an overall key value of nearly $ 2 billion each.
Saber (SBR) is an automated market making protocol (AMM) that trades between stable pairs and synthetic assets and provides returns to the platform’s liquidity providers. Raydium now offers decentralized exchange, increased productivity and liquidity pools.
Proof of institutional investors’ appetite for Solana was the weekly inflow of $ 12 million in mid-October, as CoinShares recently reported. That same week, the U.S.-registered branch of the FTX exchange announced support for the Solana blockchain, which enables users to trade, deposit, and withdraw NFTs according to the Metaplex token standard.
SOL futures open interest at record high
This stream of positive news was mirrored in Solana’s derivatives markets, as shown in the following aggregated open interest futures data:
The index hit a record high of $ 1.86 billion on October 25, up 123% in 30 days. To put things in perspective, Cardano (ADA) and Polkadot (DOT) currently hold futures worth $ 900 million.
Traders should acknowledge that the event is not necessarily positive, as futures contracts require both a buyer (long) and a seller (short). However, this growing interest allows even more players to participate.
Another positive factor is that DeFi protocols maintain a total value of $ 13.5 billion locked down (TVL), despite the fact that the sector was hit significantly after a 17-hour network outage on September 14th and 15th.
The Solana Foundation claims that bots spammed the network when Grape launched its IDO on the Solana-based decentralized exchange (DEX) Raydium. This activity exceeded capacity with a transaction load of 400,000 per second and required a hard fork coordinated by validators to bypass spam requests.
$ 250 seems closer to SOL closer than ever
Cointelegraph Markets Pro’s VORTECS ™ data also began to see a bullish outlook for SOL on October 20, nearly 24 hours before the 15 percent pump that hit $ 210.
The VORTECS ™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements and Twitter activity.
The data shows that the current number of tweets from individual accounts discussing Solana is 32% above the 30-day average. The tweet volume is a component of the VORTECS ™ score, which identified bullish conditions for SOL on October 20th.
As long as Solana’s ecosystem grows, the network will remain a viable solution for DeFi and NFT applications looking for cheap and fast transactions. Both onchain and derivative indicators signal that USD 250 SOL can be reached by the end of the year.