- Solana price has staged a strong recovery, helped by the popularity of Bonk.
- Solana's DeFi protocols like Solend, Orca, and Marinade Finance have had inflows.
Solana price pulled back on Thursday as the recent rebound eased. SOL was trading at $13.24, which was a few points below the year-to-date high of $14.18. The coin has risen by more than 67% from the lowest level in December. It remains significantly lower than its all-time high of over $200.
Solana DeFi TVL rises
Solana price has been in a sweet recovery path this year, helped by the strong rebound of Bonk, a new Shiba Inu themed meme coin. In just a few days, Bonk has seen the volume traded in its ecosystem surge by millions of dollars. Its market cap has jumped to more than $230 million.
The success of Solana has pushed the total value locked (TVL) of its DeFi platforms higher in the past few days. Marinade Finance, the biggest DeFi protocol in Solana, has seen its TVL jump by over 35% in the past 7 days. It is a liquid staking protocol that is similar to Lido, the biggest DeFi protocol in the world.
Orca, the biggest DEX in Solana, has seen its TVL jump by 20% in the past 7 days. Orca has benefited as the volume of Bonk traded in its ecosystem has risen. It has seen the TVL in its ecosystem rise to more than $34 million.
Credix, the Aave alternative in Solana, has seen its TVL jump by over 13% in the same period. Lido, the giant liquid staking platform has also seen its Solana investments surge this week. The same is true for Raydium, Quarry, and Solend.
Still, there are concerns about whether these inflows into Solana DeFi ecosystem will last. Some analysts believe that Bonk is another fad that will likely fade away in the coming months. Also, there are concerns about how FTX administrators will handle the vast Solana holdings.
Solana price forecast
SOL price has been in a spectacular recovery in the past few days as investors react to the performance of Bonk. As it rose, the token formed an inverted head and shoulders pattern, which is usually a bullish sign. Solana also crossed the 50-day exponential moving average. It has also formed what looks like a bullish flag pattern while the Supertrend indicator has turned green.
Therefore, there is a likelihood that Solana will resume the bullish trend as buyers target the key resistance point at $15. A drop below the support at $12 will invalidate the bullish view.
