By admin 
Solana (SOL) has recently surged by 5.3%, reaching a trading price above $167. This growth comes as Bitcoin’s price increased to $70,550, partly influenced by the U.S. presidential election. With this momentum, some traders believe SOL could approach the $200 mark. Solana’s recent rise shows its strength and connection to Bitcoin’s performance, drawing the attention of traders eager to benefit from the broader cryptocurrency rally related to election excitement in the U.S.
Solana Leads in Decentralized Exchange (DEX) Volume
Solana is showing strong numbers in decentralized exchange (DEX) trading volume, which highlights its high user activity and efficient transaction speeds. Recently, Solana’s DEX volume hit $11.86 billion for the week, even surpassing Ethereum’s layer-2 solutions. This achievement emphasizes Solana’s ability to attract more users and projects with its low fees and fast transaction times, showcasing its competitive edge over Ethereum in this area.
High Staking Yields and Lower Inflation Rate Boost Solana’s Appeal
Solana’s staking setup offers attractive benefits for SOL holders. The staking yield for SOL is currently 6.5%, with 66.9% of the circulating supply involved in staking, which is higher than Ethereum’s 28.6% and BNB Chain’s 22.4%. Additionally, Solana has reduced its inflation rate to 5.4%, down from 5.7%, which makes holding and staking SOL more appealing. This contrasts with Ethereum’s staking, where liquidity is more restricted, meaning SOL holders have a stronger incentive to support the network.
Positive Signals in SOL Futures Markets
In the futures market, demand for SOL remains stable with a positive funding rate, showing a balanced interest among traders. This funding rate suggests traders are either neutral or slightly optimistic about SOL’s future. Solana’s presence in perpetual futures markets, even after a small dip to $155, indicates that traders are confident and may use leverage to support a price rally towards $200.
Impact of External Events on Solana’s Path
While Solana’s network metrics are strong, factors like the U.S. presidential election results and any interest rate decisions from the Federal Reserve could affect its price. These events may introduce volatility to the market, impacting both Bitcoin and Solana in the short term.
With solid network metrics, high staking yields, and positive market sentiment, Solana appears well-positioned for continued growth. However, traders are keeping an eye on the election results and economic updates that could impact the broader cryptocurrency market.