Key takeaways:
Solana's total value locked rises to an all-time high above $12 billion.
Solana’s memecoin daily trading volume jumped 73% over the last 24 hours.
A bullish V-shaped recovery pattern projects SOL price to rise toward $300.
Solana’s native token SOL (SOL) surged 70% between June 22 and Aug. 29, following the broader altcoin market rally that saw Ethereum hit new all-time highs above $4,950. However, SOL price failed to break above $220, causing it to drop toward below $200 on Sept. 1.
It has since recovered 12% from these local lows, with onchain and technical data suggesting further gains. Can SOL follow Ether (ETH) and hit all-time highs above $300 in the coming weeks?
Solana’s TVL hits record $12 billion
The total value locked (TVL) on the Solana blockchain has increased by over 57% to $12.27 billion on Tuesday from multimonth lows of $7.8 billion reached on June 23.
Solana’s TVL has increased by almost 31% over the last 30 days.
Data from DefiLlama shows that the subsequent increase in TVL was led by Raydium, with a 32% rise in a month. Other major decentralized applications, such as Jupiter DEX, Jito liquid staking, and Sanctum protocol, registered 24%, 18% and 20% gains, respectively.
Related: DeFi Development Corp's Solana treasury exceeds $400M ...
While SOL ranks as the sixth-largest cryptocurrency by market capitalization, Solana is ahead of the other top layer-1 blockchains in TVL, though still far from the leader, Ethereum.
However, Solana’s $12.2 billion TVL surpasses that of the Ethereum layer-2 ecosystem, which includes Base, Arbitrum and Optimism. Overall, when the TVL of a DeFi platform rises, it boosts liquidity, popularity, and usability, which can positively affect prices.
Solana memecoin market cap gains 70%
The rise in Solana’s TVL mirrors an increase in memecoin market capitalization as these recovered across the board.
Most Solana-based memecoins have posted double-digit gains on the weekly time frame, as shown in the figure below. A majority of these tokens are up 15% to 30% from local lows.
As a result, Solana's collective memecoin market cap increased to $12.4 billion on Sept. 9 from $7.3 billion on June 22, a 70% climb in less than three months.
This rise in the prices of Solana-based memecoins was accompanied by increasing DEX activity on the layer-1 blockchain. The DEX volume on Solana attributed to memecoins jumped by over 73% over the last 24 hours to $817.3 million on Tuesday, per data from Blockworks Research.
The increase in memecoin activity on Solana indicates high network activity and rising usage, positively impacting demand and SOL price.
SOL’s V-shaped recovery targets all-time highs
SOL’s price action has been painting a V-shaped pattern on the weekly chart since January, as shown below.
A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.
SOL appears to be on a similar trajectory and now trades below a supply-demand zone between $200 and $240. A breakout here would increase the chances of the price rising to the neckline at $252 to complete the V-shaped pattern.
Beyond that, the next target would be the all-time high above $295, representing a 36% increase from the current price.
The relative strength index has increased to 62 at the time of writing from 42 in mid-June, suggesting that bullish momentum is picking up.
There’s increasing confidence in Solana’s ability to rally to new all-time highs among market commentators, with popular analyst Jussy saying that once the resistance at $220 is broken, the price could rally toward $270.
There is “still more upside to the first target of $250” for Solana, said fellow analyst Kepin in an X post on Tuesday, adding:
“The next target price will be $290-$300, and the ultimate bull target is $350.”
As Cointelegraph reported, technicals suggest SOL price could top at $1,000 this cycle, fueled by the approval of spot Solana ETFs in the US and institutional adoption through SOL treasuries.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
