on-chain analysis and price evolution of the crypto SOL

In this article, we look at Solana’s on-chain data and the trend of crypto SOLs.

Since November 2022, the month of the collapse of the FTX exchange, despite the recovery of the crypto market, the crypto network has not been able to recover the lost TVL.

The public in the DeFi world on Solana, discouraged by the various storms during the bear market, has not yet come back as strong as it was then.

On the other hand, the SOL currency showed all its strength in 2023, not only returning to the FTX pre-dump price level, but exceeding it by a good 30%.

What would happen to SOL if Solana’s LTV returned to $1 billion and above?

What does the future hold for Solana’s blockchain and its crypto SOL?

All the answers below.

On-chain analysis of the Solana network

The Solana blockchain does not seem to have the same success as the SOL cryptocurrency on the price front in the broader cryptocurrency market.

The on-chain data speaks for itself for the decentralized network, which, despite being one of the top 10 infrastructures in the web3 landscape, fails to return to the glory that marked the bull market year of 2021.

With an LTV of USD 446 million, SOL is still worth about 55% less than the total assets locked in the blockchain before the catastrophic collapse of the FTX exchange (the project’s main backer).

Then there’s the fact that TVL was nowhere near its highs in November 2022, which is instead in the $9.7 billion range and was reached exactly one year earlier.

Since January 1, 2023, we have seen a slight uptick in this metric, with capital more than doubling within the decentralized application landscape on Solana, but we are still a long way from declaring a true ‘turnaround’.

It is not only capital that is missing from the call of platforms that work on Solana, but also, and above all, active users on the network.

In fact, April 2023 saw the lowest number of active addresses ever recorded, and this trend has continued to date, with only a brief and temporary recovery in May.

At the moment we can count a daily average, calculated on a 7-day basis, of 250,000 active addresses.

In November 2022, this number will be twice as high. In May 2022, it will be five times higher.

However, the measure that gives the best idea of ​​the decline in cryptographic activity on Solana from 2022 is that of ‘on-chain movement volume’.

While the volume recorded on the chain in November 2022 was around $300 billion, it is now just over $70 billion.

Compared to two years ago, when the decentralized ecosystem was at its peak, volumes are now 78 times lower.

USDC, USDT and SOL remain the most traded assets on Solana’s markets, but they lack the wealth component that characterized the chain at the time.

Solana (SOL) crypto price analysis

While the on-chain data on Solana makes one wonder why the crypto network has not come back as strong as it was a few years ago, speculative activity has crypto traders dreaming of a quick price recovery for SOL.

In contrast to the still booming TVL on the chain, SOL is back above its pre-FTX crash value.

The cryptocurrency is now trading at $43.5 per unit, up 87% in the past month.

The capitalization of the coin is more than $18 billion, making SOL the 7th most valuable cryptocurrency on the market.

If we broaden our horizon a bit and look at prices for 2021 and 2022, we can see that the road back to the highs is unfortunately still long.

However, it is clear that the last month of trading has been significant in terms of how quickly a rally can occur even in a bear market.

In the weekly timeframe, SOL recently broke through the 50-period EMA, confirming the breakout in subsequent candles and setting the stage for another bullish leg higher.

Trading volumes have returned to acceptable levels, comparable to the Solana currency’s bullish phase in early 2021.

At this point, it is crucial for SOL to consolidate its structure without falling below $30, a support that marks the boundary between a possible recovery and beyond.

The RSI is in the overbought zone, so a small pullback between now and the end of the year could be a springboard for future rallies.

SOL is currently one of the best performing cryptos in the crypto markets for the past month.

When and if the network’s chain data starts to recover, we will likely see some good things in SOL’s price action.

If TVL were only to come back to $1 billion, the price of the crypto would probably be at least $70.

Probably in the next bull run this coin will be able to come back to at least $100.