Recently, two bullish indicators for Solana, one of the competitors to the Ethereum network, have been its Total Value Locked (TVL) and trading volume, both of which have been steadily increasing. Meanwhile, the price of its token, SOL, is attempting to recover.
According to DeFiLlama, Solana's TVL has risen from $205.11 million to $309.32 million since the beginning of 2023, representing a 50% growth in total asset value.
Furthermore, since the collapse of FTX in November 2022, trading volume on the Solana blockchain has been recovering and continues to climb.
TVL, Trading Volume, and Users on the Solana Blockchain, Source: DeFiLlama.
In November 2022, the bankruptcy of the exchange FTX caused a sharp decline in Solana's TVL, followed by a significant drop in the price of SOL over the following months.
Price Chart of SOL Token from August 2022 to August 2023, Source: TradingView.
Fortunately, since April of this year, SOL has risen by 106.92%. In mid-July, there was another price drop for SOL, from $32.12 to $20.544 at the time of writing this article. However, the recovery of bullish indicators is expected to act as a catalyst and drive the price of SOL higher.
