The price of Solana (SOL) has experienced a remarkable surge in the last 24 hours, gaining as much as 17.15%. This impressive rally has propelled SOL to become the fourth largest cryptocurrency in terms of market capitalization. Currently trading at $98.63, SOL boasts a market cap of nearly $42 billion, surpassing Binance Coin (BNB) which stands at $41.9 billion, according to Coingecko data.
The Rally Beyond Market Capitalization
However, this surge in price is not the only notable aspect of Solana’s recent performance. The trading volume of SOL contracts across the network has witnessed a significant increase, surpassing 10 billion with a 32% surge. Additionally, the open interest in SOL contracts has reached 1.34 billion, positioning Solana as the second-highest in open interest, trailing only behind Bitcoin (BTC) and Ethereum (ETH).
Growth in DeFi Activity
The Solana blockchain has experienced substantial growth in DeFi activity over the past two months, with the total value locked (TVL) surpassing $1.3 billion, as reported by DeFi Llama. This indicates a growing interest and adoption of decentralized finance on the Solana network.
Despite the impressive rally and growing market capitalization, there are indications that some significant players are liquidating their SOL holdings. Arthur Hayes, co-founder of BitMEX, a prominent crypto exchange, publicly disclosed selling his SOL holdings and reallocating funds to Ethereum (ETH). This strategic move aligns with the broader trend of Solana’s impressive performance this year, gaining a staggering 700%, with a notable five-fold increase in the last two months.
The rally of Solana and other cryptocurrencies can also be attributed to recent spot ETF filing updates from top asset managers, which have impacted the market. Bitcoin, the largest cryptocurrency, is also trading above $44,100 once again today.
