Within the last 24 hours, Solana (SOL) recorded a 14% surge in its trading volume as investors anticipate potential recovery. This movement follows high volatility for the broader market, which led to SOL seeing a price decrease of over 10% within the last week.
Solana Skyrockets In Key Metric
Trading volume is an important indicator for any cryptocurrency as it shows investors’ sentiments at any given time. A rise in this metric suggests positive sentiment, while a decrease suggests negative sentiment. Consequently, the 14% surge in this Solana metric indicates positive sentiments from traders and investors of the coin. Their actions also show confidence in SOL, despite current declines in its price.
At the time of writing, SOL is trading at $133, representing a decrease of 7.8% in the last 24 hours, per data from CoinMarketCap. The market cap and trading volume stand at $61 billion, and $3.22 billion respectively.
Based on the data analysis, $134 is the next crucial support level for SOL. The cryptocurrency’s ability to go over this level is important as it could lead to its recovery. Conversely, a drop below this level could cause a further decline in its price.
Developments on the Solana Ecosystem
Meanwhile, exciting developments are currently taking place in the Solana ecosystem. For instance, VanEck and 21Shares have submitted S-1 documents to launch a spot Solana ETF in the US.
This comes shortly after a similar ETF was filed in Canada last month, according to a report from Crypto-Vanguard. The possible launch of these ETFs could result in increased adoption for Solana, which is expected to increase the price for SOL.
In other news, ZK Compression has been introduced directly on the Solana Layer 1 protocol.
Mert Mumtaz, CEO and co-founder of Helius, a Solana infrastructure application, says the purpose of the innovation is the compression of the on-chain state.
For developers, this implies that they can design and scale nearly any application directly on Solana, removing the need for Layer 2 solutions.
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