The SOL token of the Solana network experienced a decrease in value; however, key metrics of the ecosystem continue to grow. Investors are questioning the potential for price recovery.
Price Dynamics and Interest in SOL
From March 28 to April 4, the price of SOL dropped by 9%. This decline coincided with the unlocking of 1.79 million SOL stakes, leading to significant price pressure. These tokens were staked in April 2021 when SOL was trading at around $23.
Growth in TVL and DEX Volumes on Solana
Despite market fluctuations, Solana shows steady growth. The Total Value Locked (TVL) reached 53.8 million SOL, marking a 14% increase from the previous month. In dollar terms, this amounts to $6.5 billion, significantly outpacing its closest competitor, BNB Chain.
Support for Scalability and Web3 Amid Criticism
Solana displays high resilience compared to other blockchains like BNB Chain and Tron. However, issues related to Maximum Extractable Value (MEV) have been raised by several market participants. Discussions around transaction encryption methods are ongoing.
While the current market situation does not allow SOL to reach bullish rally levels, Solana maintains its second position behind Ethereum due to active development of its infrastructure and steady interest from both developers and users.
