Recent analysis indicates that Solana's token (SOL) is attracting institutional investor interest and is maintaining its position in the DeFi market despite a recent price drop.
Token SOL Price Dynamics
The SOL token fell by 15.5% since reaching a peak of $209.80 last week, which has been the highest figure in over six months. The drop raised concerns about a potential double top formation, which may signal a bearish market. However, several key indicators suggest a likely recovery and a possible retest of the $200 level.
DeFi Ecosystem Status and Trading Volumes
Solana has consolidated its position as the second-largest decentralized exchange (DEX) ecosystem, recording trading volumes of $111.5 billion over the past 30 days. Despite Ethereum's dominance, Solana outpaced the combined volumes of the second-layer networks on Ethereum, which amounted to $93.1 billion. The total value locked in Solana reached $12.1 billion, a 20% increase over the last two months.
Institutional Investments and Increasing Interest in SOL
Open interest in SOL futures has risen to $10.7 billion, surpassing XRP, despite XRP's larger market capitalization. Additionally, demand from institutional investors is evidenced by $2.8 billion invested in Solana-based products. Projections suggest a high likelihood of approval for Solana ETFs in the US by the year-end.
Despite the recent price drop, Solana demonstrates positive results in DeFi and interest from institutional investors. This creates a basis for optimism regarding a price recovery for the token.
