Solana breaks $200 amid looming airdrop anticipation

Solana (SOL) briefly crossed the $200 mark on Sunday evening, marking solely the second time it has reached this threshold since 2021. This follows Solana decentralized change (DEX) quantity lately overtaking the volume noticed on Ethereum (ETH) DEXs.

The rally was short-lived, because the cryptocurrency retreated to round $190 on Monday. To set a brand new all-time excessive, Solana would wish to climb to roughly $260, in line with information from CoinGecko.

After months of stagnation following the collapse of FTX, Solana’s ecosystem has seen a resurgence in curiosity, pushed by airdrops and memecoin hypothesis. The cross-chain messaging protocol Wormhole is about to launch its W token, with a portion of the availability unlocking on the Solana blockchain. This anticipated airdrop has contributed to the elevated exercise on the community.

Airdrop allocation farming has performed a job within the regular development of Solana’s DeFi ecosystem. The entire worth locked in Solana’s DeFi protocols has been on an upward trajectory since mid-November, presently sitting at around $4.6 billion, as reported by DeFiLlama.

Solana has additionally skilled a major enhance in stablecoin quantity, processing greater than $100 billion in USDT and USDC transfers on a number of days final week, in line with data from Blockworks Research.

Memecoins have turn out to be the newest development within the Solana ecosystem, with platforms like DEX Screener enabling customers to invest on new tokens such as Slerf. This phenomenon has sparked a debate throughout the crypto group, with influential figures like Ethereum co-founder Vitalik Buterin weighing in on the purpose and potential of memecoins.

Institutional curiosity in Solana rising

Institutional curiosity in Solana has additionally been on the rise. Grayscale’s Solana Belief (GSOL) has seen its market worth climb for 3 consecutive weeks, with its internet asset worth per share nearing its highest level for the reason that product started buying and selling in April 2023.

Grayscale has additionally included Solana in its lately launched staking fund, which goals to optimize staking rewards for traders. Different corporations, similar to 21Shares and VanEck, provide exchange-traded merchandise that present publicity to the Solana ecosystem.