With the market up starting this July, and the second half of 2024. One of the remarkable tokens is Solana (SOL) with its recent liquid staking, on top of its overall performance almost matching up to that of Bitcoin on the year-to-date scale. However, the most important one was the one year achievement of almost 700% growth. With the current SOL liquid staking, what to expect for Solana price?
What is Liquid Staking?
Liquid staking is a form of cryptocurrency staking where stakers receive a tradable token representing their staked assets. In the crypto market, this means that while their original tokens are locked up to support network operations, stakers can still trade or use the liquid tokens in DeFi activities. The pros of liquid staking include increased liquidity, enabling more dynamic trading and higher yields from DeFi applications. It also allows stakers to maintain flexibility and access their funds without needing to unstake. However, the cons include potential security risks, as the creation and management of liquid tokens can introduce vulnerabilities. Additionally, liquid staking can lead to increased complexity in managing staked assets and may incur additional fees.
Solana Price Analysis For Early July 2024
Solana Price Rises Amid Market Decline
Solana (SOL) has experienced a slight rise of 2.5% in the last 24 hours, reaching almost $150 despite a general market decline. Over the past week, SOL has gained 13%, although it remains down about 10% for the month. Impressively, the cryptocurrency has seen a 675% increase over the past year, exceeding that of BTC.
Liquid Staking on Solana Grows
Recent data indicates a steady increase in liquid staking on the Solana network, with the ratio of liquid-staked coins to normally staked tokens reaching 6.85%. This growth is a positive indicator for Solana, as liquid staking allows for more active trading, potentially boosting the DeFi sector and driving SOL's price upward.
Solana Price Prediction With The Beginning of H2
Indicators Show SOL Entering Growth Phase
SOL’s technical indicators suggest a growth phase, with its relative strength index rising from 30 to just over 50, indicating increased buying pressure. Additionally, the 30-day moving average is climbing further above the 200-day average, signaling an expansionary period. The trading volume of SOL has also increased to $1.8 billion, up from $1.2 billion on June 30, indicating growing demand.
The Impact of SOL Liquid Staking on Solana Price
Liquid staking provides stakers with tradable assets in return for locking up their tokens, enhancing liquidity in the ecosystem. This increased liquidity supports higher trading volumes, more demand, and greater volatility, all of which are beneficial for SOL’s price. While liquid staking currently accounts for less than 10% of all Solana-based staking, its growth is a positive sign for the ecosystem's health and the future price of SOL.
Broader Market Influence and Future Projections
The launch of Ethereum ETFs and the potential for a Solana ETF by VanEck could further boost market optimism. Combined with positive macroeconomic trends, SOL’s price could reach $200 by the end of the summer.
SOL Price Prediction
When it comes to Solana (SOL) price prediction, based on all of the above, it seems that everything is in favor of Solana's price surge. If SOL price breaks the resistance level of $149, high chances of further increases lay ahead. However if it ever breaks down below the $145 support level, further declines are to be expected. The safe zone has always been so far between $147 and $148. A few days could shed more light on what to expect, following the ETH ETF launch, but all analysis currently suggest the upcoming of an uptrend and seize traders to buy at the current price.
Portfolio Diversification: New Meme Coins with Potential
While Solana remains strong, traders might consider diversifying their portfolios with promising new altcoins, such as WienerAI (WAI). This new Ethereum-based meme token has raised over $6.9 million in its presale. WienerAI plans to launch an AI-based chatbot for traders and features an atomic swap tool and MEV protection. With a capped supply of 69 billion WAI and 14,000 followers on its X account, WienerAI shows strong potential.
