Cryptocurrency

Solana

Terra Classic

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Terra

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 <p class="paragraph">Solana (SOL) has grown <a rel="noopener noreferrer nofollow" title="stronger" href="https://thebittimes.com/tag/stronger.html">stronger</a> in 2023 despite the regulatory crackdown that impacted the cryptocurrency market. With growing adoption and bullish economic indicators, crypto investors wonder if SOL is a current ‘buy.’</p>
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 <p class="paragraph">It is important to highlight that the investment decision to buy a given asset must be personal. Speculators must come to their own conclusions after doing their due diligence on the desired financial product.</p>
 <p class="paragraph">Nevertheless, Finbold gathered fundamental aspects about Solana to provide valuable insights. We evaluated adoption, staking, decentralized finance (DeFi), and tokenomics.</p>
 <h2 class="wp-block-heading" id="h-solana-investors-are-staking-93-of-sol-s-total-circulating-supply">Solana investors are staking 93% of SOL’s total circulating supply</h2>
 <p class="paragraph">Interestingly, investors are staking more than 93% of all Solana’s native tokens in circulation. Data retrieved by Finbold on December 2 from <em>StakeRewards</em> shows 395.88 million SOL staked in the protocol.</p>
 <figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="568" height="304" src="https://cdn.thebittimes.com/images/2023/12/02/d3c8e0c48a0968f40ed34a4e505ecde6.webp" alt class="wp-image-140987" srcset="https://cdn.thebittimes.com/images/2023/12/02/d3c8e0c48a0968f40ed34a4e505ecde6.webp 568w, https://cdn.thebittimes.com/images/2023/12/02/d3c8e0c48a0968f40ed34a4e505ecde6.webp 300w" sizes="(max-width: 568px) 100vw, 568px">
  <figcaption class="wp-element-caption">
   Stake SOL data on December 2. Source: <em>StakingRewards</em>
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 <p class="paragraph">Notably, this staked amount represents 93.33% of Solana’s circulating supply of 424.21 million SOL. A similar result is reached by comparing the “Staking Market Cap” of $24.64 billion to SOL’s capitalization of $26.43 billion, according to StakingRewards, or $26.37 billion on <em>CoinMarketCap</em>’s index.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="524" src="https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp" alt class="wp-image-140988" srcset="https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp 1024w, https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp 300w, https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp 768w, https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp 1536w, https://cdn.thebittimes.com/images/2023/12/02/ef1356f5e287ffac9d6d187dfa48120f.webp 1952w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Solana market data on December 2. Source: <em>CoinMarketCap</em>
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 <h2 class="wp-block-heading" id="solana-defi-tvl-surged-63-in-a-month-to-678-7-million">Solana DeFi TVL surged 63% in a month to $678.7 million</h2>
 <p class="paragraph">The Total Value Locked (TVL) from the Solana DeFi ecosystem surged by 63% in a month and 12.24% in a week. Data is from <em>DefiLlama</em> on December 2.</p>
 <p class="paragraph">This TVL increase puts Solana at the forefront of decentralized finance growth. In particular, SOL outperformed other chains and reconquered Avalanche’s (AVAX) seventh position with $678.7 million locked and used in its protocols.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="366" src="https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp" alt class="wp-image-140989" srcset="https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp 1024w, https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp 300w, https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp 768w, https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp 1536w, https://cdn.thebittimes.com/images/2023/12/02/86802657f5d845f69b4a66fe5cf6abe5.webp 1968w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Total Value Locked (TVL) in DeFi chains. Source: <em>DefiLlama</em>
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 </figure>
 <p class="paragraph">Essentially, both 93% staking and TVL growth signal an increased demand for SOL. Moreover, they signal investors are willing to lock their liquidity for the long term, suggesting trust in the protocol.</p>
 <p class="paragraph">Recently, Coinbase, one of the largest cryptocurrency exchanges, announced they will add support to Solana.</p>
 <h2 class="wp-block-heading" id="the-bearish-case-for-solana">The bearish case for Solana</h2>
 <p class="paragraph">However, there is also a bearish case to consider. Solana has one of the most inflationary tokenomics among all cryptocurrencies.</p>
 <p class="paragraph">This massive supply inflation affects investors, as demonstrated in the price loss after reaching Solana’s all-time high market capitalization. Additionally, <em>StakingRewards</em> considers a negative “Real Reward Rate” for SOL staking, adjusted by its yearly inflation.</p>
 <p class="paragraph">Solana’s daily token unlocks are worth approximately $5.33 million, and they can pose a threat to holders. Meanwhile, SOL’s impressive performance in 2023 could encourage investors to dump and realize profits.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/here-s-why-solana-is-stronger-than-ever-is-sol-a-buy-right-now-tbt72390.html">https://thebittimes.com/here-s-why-solana-is-stronger-than-ever-is-sol-a-buy-right-now-tbt72390.html</a></p>

Here’s why Solana is stronger than ever; Is SOL a buy right now?

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