Solana (SOL), the fifth-largest cryptocurrency, surged past $100, recovering from a previous drop caused by a five-hour outage on its network. Despite the criticism post-outage, SOL bulls managed to push the coin to $105, marking a 5% increase in seven days.
SOL and Cardano (ADA) are now two of the top-performing coins this week, with most such holders in the green.
Following the surge, renowned pseudonymous trader and analyst Wick (ZeroHedge on X) has hinted at potential further gains for SOL. Observing its recent price movements, Wick noted similarities in chart patterns reminiscent of those observed in October and December, preceding substantial market shifts.
“Solana is showing signs of a shaded squeeze area. This typically indicates a forthcoming significant movement.”
Another possible reason why SOL has pumped is its thriving ecosystem, with most of the attention focused on the decentralized exchange Jupiter (JUP).
The exchange led to some of Solana’s most successful airdrops, attracting a considerable number of users and capital to the network.
For instance, the protocol launched a three-day airdrop for the WEN token, in which 600,000 wallets participated. The success of the WEN airdrop served as a blueprint for Jupiter’s next strategy, the JUP token airdrop, launched on January 31, in which $700 million worth of coins were distributed to approximately 900,000 wallet addresses.
All in all, Solana’s TVL is at $1.74 billion at press time, according to DefiLlama. This is an increase of nearly 500% since October 2023 and a number not seen since June 2022, clearly signaling the recovery of Solana’s DeFi ecosystem as interest flows back into the blockchain.
While it’s a noteworthy surge, we can safely argue there’s still a lot of room for growth. Solana’s TVL peaked at $10 billion in November 2021 and plummeted to a low of $210 million in January 2023.