solana (SUN) has strengthened in 2023 despite the regulatory crackdown that affected the cryptocurrency market. With increasing adoption and bullish economic indicators, crypto investors I wonder if SOL is a current "buy".
It is important to highlight that the investment decision to buy a certain asset must be personal. Speculators must come to their own conclusions after performing due diligence on the desired target. financial product.
However, Finbold gathered fundamental aspects about Solana to provide valuable information. We evaluate the adoption, bettingdecentralized finance (DeFi) and tokenomics.
Solana investors are staking 93% of the total circulating supply of SOL
Interestingly, investors are betting more than 93% of all solariumThe native tokens in circulation. Data recovered by Finbold on December 2, Participation rewards shows 395.88 million SOL staked in the protocol.
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 โstake market capโ of $24.64 billion to SOLโs cap of $26.43 billion, according to StakeRewards, or $26.37 billion in CoinMarketCap's index.
Solana DeFi TVL increased 63% in one month to $678.7 million
The total value locked (TVL) of the Solana DeFi ecosystem increased by 63% in a month and 12.24% in a week. Data is from DefiLlama on December 2.
This increase in TVL puts Solana at the forefront of the growth of decentralized finance. In particular, SOL outperformed other chains and Reconquered Avalanche's (AVAX) seventh position with 678.7 million dollars blocked and used in its protocols.
Basically, both the 93% share and TVL growth indicate higher demand for SOL. Furthermore, they indicate that investors are willing to lock up their liquidity for the long term, suggesting confidence in the protocol.
Recently, Coinbaseone of the largest cryptocurrency exchangesannounced that they will add support to Solana.
Solana's bearish case
However, there is also a bearish case to consider. Solana has one of the most inflationary tokenomics of all CRYPTOCURRENCIES.
This huge supply inflation affects investors, as demonstrated in the price loss after reaching Solana's all-time high market cap. Besides, Gambling Rewards consider a Negative "real reward rate" for SOL stakeadjusted for its annual inflation.
Solana's daily token unlocks are worth approximately $5.33 million and may pose a threat to holders. Meanwhile, SOL's impressive performance in 2023 could encourage investors to divest and make profits.
Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When investing, your capital is at risk.
