- Solana’s TVL rose 48% in 30 days, surpassing growth on competing blockchains.
- Investor sentiment improves as SOL futures premiums hit a seven-month high of 23%.
- Solana and Ethereum thrive in separate niches, reducing direct competition for market share.
Solana’s native token, SOL, has gained 8% since November 26, recovering from a sharp correction to $222. Despite this rebound, the asset remains under scrutiny after falling from its all-time high of $263.80 on November 23. While the broader altcoin market outperformed during the same period, Solana’s onchain and derivatives metrics point to robust growth potential.
According to TradingView, the network has solidified its status as the second-largest programmable blockchain, supported by a significant rise in total value locked (TVL). Over the past 30 days, Solana’s TVL surged by 48%, reaching $113.7 billion. This performance outpaced rivals like the BNB Chain and Tron, whose TVL increased by 14% and 13%, respectively. Notable contributors include Jito’s liquid staking solution, Jupiter’s decentralized exchange, and Raydium, each posting double-digit growth.
Solana and Ethereum Carve Out Distinct Ecosystem Niches
Solana and Ethereum continue to grow independently, each dominating different sectors. Ethereum remains the leader in decentralized finance (DeFi), with Uniswap and CoW Swap recording significant volume gains in recent weeks. Conversely, Solana has become a hub for memecoin launches and trading, with tokens such as BONK and POPCAT driving speculative activity.
However, Solana’s reliance on memecoins could introduce long-term risks, given the volatile nature of speculative tokens. Futures market data suggests that traders remain optimistic about Solana’s price trajectory. The SOL futures premium recently reached 23%, signaling strong demand for long positions.
At its current $113.7 billion market capitalization, Solana trades at a substantial discount compared to Ethereum’s $429.4 billion. This valuation gap suggests room for further price appreciation, supported by its expanding DApp ecosystem and strong network activity. However, traders should remain cautious as excessive bullishness in derivatives markets can increase the risk of sudden corrections.
