Is a Solana (SOL) Bull Run in the Making? This Important Metric Reaches 1-Year High

TL;DR

• Solana’s SOL has experienced a significant price increase, surging 500% since January 1 and is currently trading around $60, with a recent high of almost $70.
• The total value locked (TVL) in Solana’s DeFi ecosystem has climbed to approximately $670 million as of December 5, though still below the $10 billion peak in late 2021 when SOL’s price was over $250.
• Analysts are optimistic about SOL’s future growth, with predictions of reaching new all-time highs of $300 to $1,000, and recommendations to invest in both Ethereum and Solana for diversification.

Solana’s Recent Development

Solana’s native token – SOL – has been in the spotlight in the past few months, thanks to its rapid price increase. The asset, which recently surged to almost $70, currently stands at approximately $60 (per CoinGecko’s data), representing a whopping 500% increase since January 1.

Apart from its valuation surge, SOL made the headlines with another interesting development. According to data presented by DefiLlama, total value locked (TVL) on Solana has risen to around $670 million on December 5. The last time the figure reached that peak was in November 2022.

Still, TVL on the blockchain protocol is far from the heights registered in the last quarter of 2021 when SOL’s price hit an all-time high of over $250. Back then total value locked stood at more than $10 billion.

Is SOL Poised for a Further Rally?

Numerous analysts including the X (Twitter) user Crypto King and Jacob Canfield have predicted that Solana’s value could hit a new ATH in the following years.

The former thinks it could hit a new all-time high of $300 in the long run, while the latter envisioned the price exploding to a whopping $1,000. Canfield also advised people to diversify and invest in both Ethereum and Solana:

“No reason not to have allocations to both. It’s like trying to bet on Microsoft or Google. Tesla or Ford. Just buy both.”

Another individual who also believes the asset is on the verge of a bull run is the X user Crypto King. The analyst forecasted that SOL would be the first altcoin “to pump 3x:”

“Solana has been in a maximum consolidation zone. $55-$61 will be the zone , after which we will possibly see the 2x at $120 very soon.”