Solana demonstrates growth potential despite the overall decline in the cryptocurrency market

Anatoliy Yakovenko’s native blockchain token, SOL $257.25 Solana -0.62% Market capitalization $122.1 billion VOL. 24 hours $1.19 billion , has fallen by more than 8%. Today, January 23, the virtual coin is trading at $ 80.9 with a market capitalization of $ 35 billion. Traders made daily trading deals worth $ 2.6 billion. The decline in the price of the digital token was triggered by the general bearish trend in the crypto market.

Over the past two weeks, SOL has been trying to break through the $ 100 level, but has failed. Nevertheless, this regression should not cause excessive concern, given the inability of the cryptocurrency market as a whole to maintain a level above $ 1.6 trillion in 2024.

Despite the recent drop, in December, SOL showed an impressive 84% gain later in the day. In contrast, investors are beginning to express concerns about the lack of sustained positive price momentum.

Optimism about the performance of the SOL token is partly fueled by the growth of deposits in the decentralized finance (DeFi) sector of the Solana Network. The total blocked value (TVL) of SOL tokens peaked at 15.4 million on December 19, 2023. This is 60% more than in November.

Despite the recent decline in the number of transactions and active DApps users, Solana’s network activity is growing, although it still lags behind the competitive ecosystems of BNB Smart Chain and Polygon.

Over the past seven days, the number of transactions in Solana has decreased by 8.5%. However, the coin is leading in terms of the absolute number of transactions — 72.3 million.

Crypto industry analysts say that SOL has the potential for growth if the network continues to attract interest from projects that value its stability amid high demand for network processing, especially when many competitors face rapidly rising transaction fees or prolonged instability.