SOL Price Soars Over $200 As Solana Surpasses Ethereum

SOL price surge continues, surpassing $200 for the first time since 2021, with a 10% increase, marking a 800% gain over the past year.

Despite the overall market consolidation, the astonishing price climb of Solana, which is Ethereum’s Layer-1 competitor has continued.

Once again topping $200 for the first time since December 2021, the SOL price increased by another 10% on Sunday, March 17, bringing it to a new high.

Reason Behind SOL Price Rally

With gains of more than 800% over the previous year, Solana has drastically condensed the distance between its current levels and its all-time highs. Over the weekend, there was a significant increase in demand for Solana-based memecoins, which led to a strain on the capacity of the Solana network’s capacity at risk.

As a result, the Solana network activity surpassed that of Ethereum. As of March 16, the overall trading volume of Solana exceeded that of Ethereum, reaching $3.52 billion and surpassing Ethereum’s daily volume by more than $1.1 billion, according to DefiLlama.

An increased interest in new memecoins primarily drove this substantial increase in Solana network activity. On March 14, investors flocked to Book of Meme (BOME), a newly minted memecoin that quickly climbed from a market capitalization of insignificant value to a market capitalization of $1.45 billion in just 56 hours.

Furthermore, according to DefiLlama, the total value locked (TVL) of Solana’s decentralized finance (DeFi) has increased by more than 80 percent over the past month.

Solana’s DeFi TVL has reached its best level in the past two years as a direct result of this tremendous expansion. We currently estimate the network’s DeFi TVL to be worth $3.8 billion. Solana has witnessed the most significant growth over the past month compared to the top five DeFi networks based on TVL.

On the other hand, the total quantity of SPL tokens on the Solana network significantly increased, reaching its highest point ever recorded.

SPL, an acronym for Solana Program Library, is the protocol responsible for generating and administering tokens on the Solana blockchain. This protocol is comparable to the ERC-20 standard.

Recently, there has been a significant increase in the amount of trading on the Solana blockchain for meme coins. According to Looksonchain, trading Solana memecoins does not always result in a profit for all interested parties.

Over three days, a specific address participated in eleven trades with Solana memecoin, and each of those trades resulted in losses. The address lost a total of 754 SOL, which is equivalent to $147K.

The fear of missing out (FOMO) appears to be the driving force behind this address, since it displays a pattern of making purchases at high prices and selling at lower prices.

As a result, investors must exercise increased caution when dealing meme coins on Solana due to the high level of market volatility. Additionally, according to the data on the blockchain, major market participants have engaged in profit booking.

According to additional information provided by Lookonchain, significant investors are selling their holdings to capitalize on profits brought about by the recent spike in the price of SOL.

Within the past two days, the whale known as “BU6N2Z” has deposited 200.000 SOL, equivalent to 39.85 million dollars, into Binance.

Currently, “BU6N2Z” has 1.62 million SOLs ($323 million) in their possession, with 387 thousand SOLs ($77 million) stored in their wallet and 1.23 million SOLs ($246 million) staked.