- Solana token has jumped by over 700% from its lowest point in December.
- Bonk, its biggest meme coin, has soared by over 2,400% and the rally is continuing.
- Orca, a top DEX, has continued gaining its market share in the industry.
Solana price is hovering near its highest level in 2023 as demand for some of its ecosystem tokens rose. The SOL token surged to a high of $64 on Wednesday, a few points below the year-to-date high of $69. It has jumped by over 700% from its lowest point this year, making it the best-performing top-ten cryptocurrency.
Bonk and Orca growth
Solana’s ecosystem is doing modestly well, leading to more transactions in the network. In the decentralized finance (DeFi) space, Solana’s total value locked (TVL) and volume have jumped recently.
Orca, the biggest decentralized exchange (DEX) in the ecosystem, has done well as its liquidity has jumped to over $72.5 million. In the past 24 hours, the exchange handled over $147 million worth of tokens, making it a top-ten DEX in terms of volume.
The other fast-growing parts of Solana’s ecosystem are Raydium, Lifinity, and Phoenix whose 24-hour volume jumped by more than 20%. Solana’s total DeFi TVL has jumped to more than $315 million, with Solend leading the way.
Meanwhile, Bonk, the meme coin that started earlier this year, has thrived. The token, which is a competitor to Shiba Inu and Floki, jumped to a high of $0.0000085, an all-time high. It has defied gravity and jumped by over 2,485% from its lowest level this year.
This surge has made Bonk one of the biggest digital currencies in the world as its total market cap has jumped to over $500 million. According to SolScan, there are now over 485k Bonk holders, with the biggest one having a 12% share. The total active holders are about 4,300.
Solana and its key assets are doing well because of the rising expectations that the Federal Reserve will slash interest rates in the first half of 2023. Besides, there are elevated signs that inflation is slowing and the labor market is tightening.
SOL has also risen because of the ongoing hopes that the SEC will ultimately approve a Bitcoin ETF, which will lead to more institutional adoption.
Solana price forecast
Turning to the daily chart, we see that the SOL price has been in a spectacular rally in the past few months. In this period, it rose from a low of $7.8 in December and is now trading above $60. The coin remains comfortably above the 50-day and 100-day moving averages.
Solana has also moved above the key resistance points at $48.29 (August 2022 high) and $51.40 (November 21st low). It also seems to be forming a bullish pennant pattern. Therefore, the outlook for the Solana price is bullish if buyers manage to push it above the YTD high of $68. A break above that level will open the possibility of it jumping to $100 in the coming months.
