Solana (SOL) has experienced a notable increase, rising by over 50% in just two weeks. Coinbase (COIN) has emerged as a significant driver of upward pressure on Solana.
The popularity of Coinbase in the SOL market aligns with recent developments in the cryptocurrency space. In recent weeks, data from Kaiko has shown that the digital asset exchange Coinbase, listed on the NASDAQ, has become a crucial source of upward pressure on Solana. The data indicates that since October 25th, the cumulative volume delta (CVD) of SOL on Coinbase has increased by nearly a million dollars, indicating a significant influx of capital into the cryptocurrency.
Cumulative Volume Delta (CVD) is a key measure of market sentiment. It measures the net difference between buying and selling volumes over time, providing valuable insights into overall bullish or bearish pressures in the market. Positive CVD values indicate an increase in buying volume and suggest bullish sentiment, while negative values indicate the opposite.
According to Riad Kary, an analyst from Kaiko, the average order size on Coinbase has been significantly larger than on other exchanges, which may indicate institutional interest in acquiring SOL through this NASDAQ-listed platform.
The leading role of Coinbase and the bullish expectations from VanEck coincide with recent developments in the cryptocurrency market. The Director of Institutional Assets at VanEck published a report outlining a scenario that could lead to SOL reaching a price of $3,200 by 2030. This optimistic forecast is based on the potential for Solana to become the first blockchain capable of accommodating applications with over 100 million users.
However, despite the surge in Solana, the activity across its network has not experienced a similar rise. According to data from DeFi Llama, the Total Value Locked (TVL) in Solana-based decentralized finance (DeFi) protocols is an incomplete measure as it widely relies on tracking contract usage.
Decentralized exchanges on Solana have witnessed an increase in trading volume, and active addresses on the network have also risen. However, these metrics have not seen a significant surge that would justify the recent price gains, according to chain analyst Patrick Scott.
As Solana continues to attract attention from investors and institutions alike, the cryptocurrency market closely monitors developments that could shape its future. The impact of Coinbase and the optimistic outlook presented by VanEck have added to the excitement surrounding SOL. However, the disconnect between price performance and on-chain activity raises questions about the sustainability of the current rally.
Market participants will be monitoring Solana’s ability to attract more users and developers to its ecosystem, as well as its capacity to support applications with massive user bases, as suggested by the VanEck report. Additionally, the cryptocurrency’s flexibility in the face of market volatility and its ability to adapt to evolving trends will be crucial factors in determining its long-term success.
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