The price of Solana (SOL) has seen a strong increase in the last 24 hours. The popular altcoin has risen 3.4% at the time of writing, bringing the price to $166.
What makes this increase extra striking is that the rest of the crypto market is actually in decline. For example, Bitcoin (BTC) and Ethereum (ETH) fell by 2% and 0.5% respectively in the same period.
Continued growth of Solana drives the price
An important driver behind the increase in the SOL price is the continued growth of the Solana network. According to on-chain data from DeFiLlama, the Total Value Locked (TVL), an indicator that measures the use of Decentralized Finance (DeFi) platforms, has increased significantly in recent months. This year alone, TVL has increased nearly 350%, bringing the Solana Network to over $6 billion in TVL. This level was last reached at the beginning of 2022.
TVL grows by 25% in September
September proved to be an exceptionally positive month for Solana, with DeFi usage increasing by almost 25%. With this, Solana surpasses its competitors, such as Ethereum, which only saw a 4% growth in usage during the same period. This impressive growth is a positive signal for the future price development of SOL.
Memecoins drive usage on Solana network
One of the reasons for the increased activity on the Solana network is the growing popularity of memecoins. Currently, there are over 600 memecoins active on the platform, with new ones being launched every month. These tokens are driving a significant increase in trading volume and usage of DeFi platforms, contributing to the overall growth of the network.
Source: https://newsbit.nl/waarom-stijgt-de-solana-sol-koers-vandaag/
