Top 3 reasons why Solana price could see additional pump in 2022

Consistent biological system development, institutional speculation, and a sound subsidiaries market are solid signals that SOL will keep on being a force to be reckoned with in 2022.

Solana (SOL) has turned into a force to be reckoned with in the smart agreement industry and in the previous year, the organization's all-out esteem locked (TVL) developed by $660 million and stretches across in excess of 40 decentralized applications to hit a record-breaking high above $11 billion.

Indeed, even with this development, financial backers have the motivation to address whether the current $56 billion market capitalization is defended and how it thinks about contending networks like Binance Smart chain (BNB), Avalanche (AVAX), and Polygon (MATIC).

By breaking down the beyond half-year value execution, there's an obvious decoupling from Terra (LUNA), Solana, and Avalanche when contrasted with other smart agreement platform contenders.

There is a strong institutional appetite for Solana's ecosystem

Solana's market capitalization is more than double that of Avalanche and Terra, each of which has a $26 billion market cap. Searching Solana's latest news on Cointelegraph yields an exciting array of institutional investments, ranging from the $314 million private token sales by Solana Labs in June, to an $18 million fundraise in September by Solana's DEX project Orca.

There's strong proof of a developing ecosystem deciding by financial backer hunger. In any case, to see how fruitful Solana's versatility arrangement is, we need to assess its use measurements.

Taking a gander at the number of dynamic locations on Solana's DApps is a decent spot to start.

Source: DappRadar

Ethereum's leading DApp by active addresses is Uniswap, which has 188,200. Therefore, Raydium’s 97,600 weekly users are rather impressive, considering it was launched just 10 months ago. Meanwhile, back in Feb. 2021, Uniswap already held over $4.3 billion TVL.

As for Solana’s NFT marketplace Magic Eden, its 58,400 weekly active addresses also account for more than half of Ethereum’s OpenSea, the sector’s absolute market leader in volume and users activity.

Avalanche user activity is highly concentrated on the Trader Joe decentralized finance app, but its $715 million weekly volume pales in comparison to Uniswap’s $22.1 billion or Raydium’s $12.5 billion. The same can be said by Polygon, which has $573 million in trading activity at its QuickSwap DEX.

Solana has the third-largest futures market

Solana currently holds the third largest futures open interest, which is the most relevant metric in derivatives contracts. This indicator aggregates the total number of contracts held by market participants regardless of the recent trading activity.

In spite of the sharp drop since the Nov. 8 top at $1.9 billion, the current $860 million fates open revenue positions Solana the third subordinate market by size. For instance, Binance Coin (BNB) prospects hold $520 million, trailed by Terra (LUNA) with $430 million.

Solana leads in TVL, clients, and subsidiaries markets

Without a doubt, there's an amazing measure of action coming from Solana's on-chain information and subsidiaries markets. The organization's TVL expanded by 15x in the course of recent months and Solana's DApps clients are almost a large portion of how many clients on the Ethereum organization.

Solana is by all accounts rapidly shutting the hole in three significant measurements: TVL, dynamic clients, and subordinate markets. Contenders like Terra, Avalanche, and Polygon appear to be quite far behind, which perhaps legitimizes the market capitalization premium.

Jamie Lamten

Jamie Lamten is a writer and investor in crypto, provides his opinions and the latest news about non-fungible tokens.

Post a Comment (0)
Previous Post Next Post