Why Solana's winning streak might not end anytime soon

Solana’s captured value increased last week.
SOL was up by 4% last week, and derivatives metrics were bullish.

The Solana [SOL] ecosystem continued to experience a positive week in TVL growth. The hike in TVL clearly meant that blockchain’s performance on the DeFi front improved last week. The token’s price action also remained in the bulls’ favor.

Solana’s TVL is on the rise

Solana Daily, a popular X (formerly known as X), posted a tweet highlighting the blockchain’s performance in the DeFi space over the last week.

As per the tweet, Solana’s TVL stood at $442 million with a 24-hour change of over 2.5%.

SOLANA TVL STATUS

The Solana ecosystem continued to experience a positive week in TVL growth. In this week, @jito_sol showed 17% growth in TVL, contributing $38M to the ecosystem.#solana #defi pic.twitter.com/Delut29aKz

— Solana Daily (@solana_daily) November 8, 2023

The rise in SOL’s TVL is generally perceived as a positive development, as a high TVL means that a network is more trustworthy.

Apart from this, the tweet also mentioned the top contributing projects.

Marinade Finance, Jito, and Solend were the top three projects in terms of TVL gains last week. Lido and Marginfi also made it to the top five on the same list.

Upon checking, AMBCrypto found out that the blockchain’s captured value also shot up last week.

This was evident from Artemis’ data, which revealed that Solana’s fees and revenue gained upward momentum over the last few days, which looked promising.

Additionally, its daily transactions also followed a similar trend of increment. However, it was surprising to note that though the number of transactions increased, SOL’s daily active addresses dropped last week.

Source: Artemis

Solana’s price is also increasing

Similar to its network activity and DeFi space, the blockchain’s native token’s price action also supported the bulls last week.

According to CoinMarketCap, SOL was up by more than 4% in the last seven days. At the time of writing, it was trading at $44.11 with a market capitalization of over $18.5 billion.

While the token’s price rose, its trading volume dropped in the last 24 hours, reflecting less interest from investors in trading the token.

Like trading volume, SOL’s social volume also dropped last week.

Additionally, Solana’s weighted sentiment plummeted as well, meaning that bearish sentiment was dominant in the market.

Source: Santiment

Read Solana’s [SOL] Price Prediction 2023-24

Nonetheless, investors might not have to worry as a few metrics looked bullish. AMBCrypto checked SOL’s derivatives stats and found that the possibility of a continued price uptrend was high.

This seemed to be the case, as while SOL’s price increased, its open interest also went up. Moreover, as per Coinglass, SOL’s funding rate also remained green, meaning that SOL was in demand in the derivatives market.