Solana (SOL) price is finding resistance near its all-time high again, but solid fundamentals and impressive growth from its decentralized finance (DeFi) and non-fungible token (NFT) ecosystem are likely to propel the altcoin higher. of the $ 250 before the year. end.
Institutional investor interest is likely a key factor behind Solana's impressive 490% gain since August. For example, SOL is the fourth largest component of the Bitwise 10 Crypto Index Fund ($ BITW), which overall is a $ 1.3 billion over-the-counter negotiable market instrument.
Traders should remember that this event is not necessarily positive as futures contracts require both a buyer (long) and a seller (short). However, the growing interest allows the participation of even more important players.
DeFi is gaining ground
Solana's two most prominent decentralized finance projects are decentralized exchanges with built-in yield generation programs and each has a total locked value of nearly $ 2 billion.
Saber (SBR) is an automated market maker (AMM) protocol that trades between stable pairs and synthetic assets and provides returns to the platform's liquidity providers. Meanwhile, Raydium offers decentralized exchange, yield agriculture, and liquidity pools.
Evidence of institutional investor appetite for Solana was the weekly entry of $ 12 million in mid-October, as reported by CoinShares Recently. In the same week, the FTX registered branch in the United States was announced. support for the Solana blockchain, which allows users to exchange, deposit and withdraw NFTs that are compliant with the Metaplex token standard.
SOL futures open interest reached an all-time high
This positive news flow has been reflected in Solana's derivatives markets, as shown in the aggregate futures open interest data below:
The indicator reached a record $ 1.86 billion on October 25, representing a 123% increase in 30 days. To put things in perspective, Cardano (ADA) and Polkadot (DOT) currently have an open interest in futures of $ 900 million.
Traders should recognize that this event is not necessarily positive, as futures contracts require both a buyer (long) and a seller (short). However, this growing interest allows the participation of even more important players.
Another positive factor is that DeFi protocols maintain a total locked value (TVL) of $ 13.5 billion despite the sector taking a substantial hit after the 17 hour network outage during the 14th and 15th of September.
The Solana Foundation stated that the bots spammed the network when Grape launched its IDO on the Solana-based Raydium decentralized exchange (DEX). That activity exceeded throughput with a transaction load of 400,000 per second, requiring a hard fork coordinated by validators to ignore spam requests.
$ 250 seems closer than ever to SOL
VORTECS ™ data from Cointelegraph Markets Pro It also began to spot a bullish outlook for SOL on Oct. 20, nearly 24 hours before the 15% surge that led to $ 210.
The VORTECS ™ score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements, and trading activity. Twitter
The data illustrates that the current number of tweets from unique accounts talking about Solana is 32% higher than the 30-day average. The volume of tweets is a component of the VORTECS ™ score that identified bullish conditions for SOL on October 20.
As Solana's ecosystem expands, the network will continue to be a viable solution for DeFi and NFT applications looking for cheap and fast transactions. Both the onchain and derivatives indicators indicate that $ 250 SOL by the end of the year is fully feasible.
The views and opinions expressed here are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and trade movement involves risk. You should do your own research when making a decision.
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