Ethereum

2024

Solana

<p class="is-style-lead">On Feb. 20, Solana TVL surpassed $2 billion for the first time in 2 years, and funds flowing in from Ethereum through the Wormhole bridge suggest more SOL price gains ahead.&nbsp;<strong>&nbsp;</strong></p> 
<p><a href="https://crypto.news/price/solana/">SOL</a>‘s price has lost steam after soaring to a new 2024 peak of $118.40 on Feb. 15. However, an on-chain data trail of funds inflows trickling down to Solana from the Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) network this week could spark a SOL price rebound toward $150.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="solana-price-dips-12-falling-below-market-average">Solana price dips 12%, falling below market average&nbsp;</h2> 
<p>In the first half of February 2024, Solana was at the forefront of the crypto market rally, with SOL price soaring 26.8% and adding nearly $11 billion to its market capitalization. But that market trend flipped on Feb. 15 as investors began to take profits once the SOL price reached the 2024 peak of $118.&nbsp;</p> 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="682" src="https://crypto.news/app/uploads/2024/02/image-60.png" alt="Is Ethereum's rally driving Solana's price to $150?&nbsp; - 15" class="wp-image-14251132">
 <figcaption class="wp-element-caption">
  Solana (SOL) price performance vs. Total3 Altcoin Market Cap (Excluding BTC and ETH)&nbsp; | Source: <a href="http://TradingView.com" target="_blank" rel="noreferrer noopener">TradingView</a>
 </figcaption>
</figure> 
<p>At press time on Feb. 21, Solana is trading at $103, down 12% from its Feb. 15 peaks.&nbsp;</p> 
<p>Meanwhile, in contrast, the total altcoin market has grown by 5% during that period. Solana’s negative price performance seems driven by insiders and existing holders’ booking profits rather than macro factors.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="solanareceives-25-million-in-inflows-from-ethereum">Solana&nbsp;receives $25 million in inflows from Ethereum </h2> 
<p>However, while some SOL traders are taking chips off the table, the Solana network has continued to make some giant strides this week, which could trigger an early price rebound.&nbsp;</p> 
<p>In the past week, Solana has received significant inflows from Ethereum as investors increasingly look to leverage Solana’s more efficient and cost-effective defi services.</p> 
<p>Between Feb. 14 and Feb. 21, investors transferred funds worth over $24.6 million from Ethereum to Solana, per on-chain data from Wormhole bridge Explorer.&nbsp;</p> 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="740" src="https://crypto.news/app/uploads/2024/02/image-62.png" alt="Fund Outflows Ethereum (ETH) to Solana (SOL), Feb 13 - Feb 21 " class="wp-image-14251134">
 <figcaption class="wp-element-caption">
  Fund Outflows Ethereum (ETH) to Solana (SOL), Feb. 13 – Feb. 21 | Source: <a href="https://wormholescan.io/" target="_blank" rel="noopener">Wormhole Bridge</a>
 </figcaption>
</figure> 
<p>This indicates that Solana continues gaining traction among developers and defi users due to its high throughput and low transaction costs. Hence, this rising flow of funds bridged into Solana-hosted decentralized applications (dApps) is a bullish indicator of its growing adoption and utility.</p> 
<h2 class="wp-block-heading" id="solana-defi-tvl-hits-2-billion-milestone">Solana defi TVL hits $2 billion milestone&nbsp;</h2> 
<p>Investors transferring funds worth over $24.6 million from Ethereum into the Solana ecosystem, despite the 12% decline in Solana’s price over the last seven days, shows an evident divergence between short-term price movements and long-term investor sentiment.&nbsp;</p> 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="575" src="https://crypto.news/app/uploads/2024/02/image-61.png" alt="Solana (SOL) Total Value Locked (TVL) hits $2 billion, Feb. 21, 2024" class="wp-image-14251133">
 <figcaption class="wp-element-caption">
  Solana (SOL) Total Value Locked (TVL) hits $2 billion, Feb. 21, 2024 | Source: <a href="https://defillama.com/chain/solana" target="_blank" rel="noreferrer noopener">DeFiLlama</a>
 </figcaption>
</figure> 
<p>The latest wave of fund inflows has now propelled Total Value Locked (TVL) on the Solana network above the $2 billion milestone for the first time since June 2022.&nbsp;</p> 
<p>This further underlines that the ongoing SOL price pullback is not driven by any discernible deterioration of Solana’s fundamental network growth metrics.&nbsp;</p> 
<p>If the trends persist, the rising demand for Solana defi service could eventually evolve into market demand for native SOL tokens and ultimately trigger a bullish price reversal towards the $150 territory in the coming weeks.</p>

Is Ethereum’s rally driving Solana’s price to $150?

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