- Solana DeFi Key Indicators Show Signs of Recovery from February Low
- SOL’s high volatility spooked investors
According to a February 18 tweet from Kamino Finance, Solana’s (SUN) Decentralized exchange (DEX) activity in 2023 was better than other chains if one particular metric is taken into account.
DeFi velocity has recently proven to be an interesting metric for gauging vitality. @solarium DeFi
According to recent statistics, Solana has so far demonstrated the highest speed of all DeFi ecosystems
Here’s why it’s important
– Kamino Finance (@Kamino_Finance) February 17, 2023
How much they cost Today’s value 1,10,100 SOL?
Called ‘DeFi Velocity’, the metric basically measures trading volume vs. Total Value Locked (TVL) on a blockchain. The report noted that Solana had an average DeFi velocity of 0.25 in January, more than double that of the second-place. Polygon (MATIC) on the list.
DeFi recovery on cards?
Data from DeFiLlama reported that Solana saw his DeFi activity pick up with his TVL recording a 6% jump over the past week. This development also came in the form of Solana he performed badly In the month of February, hit by declining interest in its ambitious meme coin, bonk.
After falling to a monthly low on Feb. 11, on-chain DEX daily trading volume more than doubled as of this writing, showing signs of recovery. However, the accumulated weekly volume decreased 2.3% in February, which shows the stress of Solana.
What does the price of the SOL say?
SOL 2023 has grown largely out of FTX-induced negativity. according to data from coin market cap, the coin has closed with a 112% gain since the beginning of 2023. Of late, the price has shown high volatility with wild intraday swings. At press time, it was priced at $22.99, an increase of 1.69% from the previous day.
Sentiment data supports the above claim. Price volatility has risen steadily over the past week, keeping sentiment weighted in negative territory. High volatility may cause risk-averse traders to stay away from trading currencies.
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The volume of transactions, which registered a decrease of almost 60% per month, was a testament to the decline in investor confidence.
Data from Coinalys shows that there has been a steady decline in Solana’s open interest (OI) over the past 30 days. A decrease in open interest indicates a decrease in trading activity and market interest in the currency. With OI forming a bearish divergence, the SOL price may face further decline in the near term.