- Over 76% of Solana’s tokens are staked, reducing the circulating supply of SOL across exchanges.
- Solana price is currently in a downtrend due to the sudden 18-hour network congestion on Thursday.
- Analysts are bullish on Solana, predicting that the SOL price could make a comeback above $200 before a massive rally begins.
As average transaction fees on the Ethereum network hit a high of $48.33, there was a spike in on-chain activity on the Solana network. According to data from Staking Rewards, over 76% of Solana tokens worth $84 billion have been staked by users in exchange for high-yield interest payments.
Solana prepares for a comeback above $200
A rise in staking on the Solana network has reduced the circulating supply of SOL. Historically, a shortage of the asset’s tokens fuels a bullish narrative for price. Analysts expect the SOL price to recover from a drop below $200 and make a comeback within a week.
The Solana network suffered network congestion on Thursday, and the crypto community criticized the Ethereum-killer for lack of centralization and transparency. After an 18-hour downtime, the Solana network is yet to state the cause of the congestion.
Solana’s on-chain activity has increased as developers and users from the Ethereum network rotate capital into SOL for cheaper transaction fees. Solana has emerged as the top choice in the DeFi ecosystem.
The altcoin, popular as an Ethereum-killer, is currently downtrend, trading at $178.78. @Crypto_Ed_NL, a cryptocurrency analyst, is not convinced that the correction is complete.
$SOL
— Crypto_Ed_NL (@Crypto_Ed_NL) December 9, 2021
Missed the green box by a hair in the dump last friday/saturday but not out of the woods yet imo.
Want to see a clean break out from that pennant before I consider the correction to be finished pic.twitter.com/XqUWNYV4Hg
Tyler Hill, a cryptocurrency analyst and YouTuber, expects Solana price to explode. Hill says, “December 15 is the last day that we have to push back above 200 in order for us to see this key level of support hold again, as it has multiple times last year. If we see a break to the downside within a week, we could see this level push us back in an uptrend.”
FXStreet analysts have evaluated the Solana price trend and predicted an upswing to $240 after a dip.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.