Solana (SOL) Records Positive Moves As Bears Took Control, What’s Pushing It?

The crypto market witnessed heightened volatility last week, with most coins observing steep declines. However, today, June 27, the market has registered a slight recovery as most coins posted a few gains, but SOL’s gain is the most notable among all. 

Solana’s native token, SOL, recorded over 3% price growth over the past 24 hours, while others, like Bitcoin, barely crossed 1%, given the significant increase. The Ethereum killer is now number 9 among the top-gaining coins today. However, considering the steep volatility index, whether SOL bulls can sustain today’s rally remains uncertain.

Solana saw bearish days in June after the SEC listed it among tokens labeled as securities in its lawsuit against Binance and Coinbase. SOL’s price nosedived, dropping over 41% between June 3 and June 16. The asset’s price consolidated between $15 and $19 until July. 

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However, SOL reached a monthly high of $29.31 on July 13 after news of Ripple’s win against the US SEC in the multi-year lawsuit circulated throughout the industry. 

Although the bearish momentum observed in the last seven days snatched some gains from the asset, its 30-day price movement remains bullish, with over 52% price growth.

Solana has lost 2.33% of its market valuation over the past seven days before rebounding with notable gains today. On Thurdsay morning, SOL traded at $25.25, with a 3.71% 24-hour price increase.

SOL’s trading volume has increased in the last 24 hours. On July 26, SOL recorded a 57.07% increase in trading volume. This growth in trading activity suggests increased interest in SOL and SOL-related products.

Following Ripple’s partial victory in the SEC’s securities lawsuit, Solana-based investment products have received massive attention from investors. According to CCData’s digital asset management review, Solana-based investment funds’ assets under management (AUM) increased in July.

The report showed that most of the boost happened on July 14, a day after Judge Torres ruled that XRP token sales on the secondary market are not investment contracts. Judge Torres’ ruling acted as a point of reference to other assets, including SOL, marked as securities by the SEC.

CCData’s report stated that the AUM for SOL-based investment products increased by 55.7% to $87.8 million in July. This observation could be attributed to SOL’s impressive performance over the past month.

Regulatory uncertainty and the FTX fiasco affected the sentiment around Solana-based dApps, dipping further into the Solana DeFi ecosystem. 

DeFi Llama data shows that Solana’s total value Locked (TVL) crumbled from a peak of $9.66 billion in November 2021 to less than $300 million in 2023. But with the partial resolution and the heightened optimism for a clearer regulatory atmosphere, Solana DeFi’s activities have improved. 

As of July 14, SOL TVL hit a yearly peak of approximately $1.1 billion before retracing to $313.9 million. A close look at the chart shows SOL TVL has witnessed a slight increase and now stands at $316 million. 

Chances that SOL will see a more bullish rebound following a total resolution of ongoing regulatory issues are high.