In happenings, in the world of cryptocurrency, Solana (SOL) has shown a 2% growth despite a general market decline. This positive performance has sparked conversations among investors and observers about the possibility of SOL reaching the $200 mark.
The cryptocurrency market has faced challenges particularly due to measures and economic factors. On March 14 the Hong Kong Securities and Futures Commission (SFC) issued an announcement regarding Bybit exchange. The SFC pointed out that Bybit, known as the derivatives platform with significant open interest of $15.1 billion lacks authorization to offer lending and derivatives services in the area as per reports from CoinGlass.
Moreover recent economic trends have been influenced by the Producer Price Index (PPI) report from the U.S. Labor Department. The PPI measures changes in prices that domestic producers receive for their goods and services on average; it showed a 0.6% increase from January to February. This rise in PPI has adjusted expectations regarding an interest rate reduction, by the U.S. Federal Reserve scheduled for March 20.
Amidst these events Ethereums recent Dencun upgrade on March 13—bringing gas fees—has also impacted Solanas momentum.
The recent update has made transactions, on Base, an exchange (DEX) built on Ethereums layer 2 technology cost effective compared to those on Solana. To illustrate the fee for a swap on a Solana DEX was $0.37 on March 14 whereas a similar transaction on Bases DEX was priced at $0.02.
Despite facing challenges Solana continues to attract attention with its meme coins and airdrops like Dogwifhat (WIF) Bonk and Jupiter (JUP). An interesting development unfolded when Coinbase, a known exchange published a guide titled “How to Buy Jeo Boden (BODEN) ” directing readers to CoinMarketCap for listings. This mention by Joe Weisenthal on March 13 garnered interest. Received over 621,300 views on the X social network.
The upcoming airdrops and the increasing use of Solanas applications (DApps) have contributed to trends in the networks performance metrics. Recent data shows a 13% rise in Solanas value locked (TVL) and a 24% increase in DApp volumes over the week. While Ethereum remains dominant in TVL terms Solana has experienced growth, in DApp engagement.
In the futures market there is a demand, for leveraged positions in SOL. The perpetual contract, which includes a funding rate to balance leverage demand shows that long position holders have an interest. Although the current 0.05% funding rate for SOL may be costly for positions it indicates an interest in bullish market conditions.
Despite debates regarding its centralization and stability when compared to Ethereum the Solana network has been experiencing increased activity. The successful introduction of SPL tokens on centralized exchanges has boosted investor confidence leading to people buying SOL tokens to take part in various airdrop programs. This trend suggests that reaching the $200 price target, for SOL is achievable highlighting Solanas resilience and potential amid market fluctuations and regulatory scrutiny.
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