Key takeaways:
Solana's total value locked rises to an all-time high above $12 billion.
Solana’s memecoin daily trading volume jumped 73% over the last 24 hours.
A bullish V-shaped recovery pattern projects SOL price to rise toward $300.
Solana’s native token SOL ( SOL ) surged 70% between June 22 and Aug. 29, following the broader altcoin market rally that saw Ether hit new all-time highs above $4,950. However, SOL price failed to break above $220, causing it to drop toward below $200 on Sept. 1.
It has since recovered 12% from these local lows, with onchain and technical data suggesting further gains. Can SOL follow Ether ( ETH ) and hit all-time highs above $300 in the coming weeks?
Solana’s TVL hits record $12 billion
The total value locked (TVL) on the Solana blockchain has increased by over 57% to $12.27 billion on Tuesday from multimonth lows of $7.8 billion reached on June 23.
Solana’s TVL has increased by almost 31% over the last 30 days.
Data from DefiLlama shows that the subsequent increase in TVL was led by Raydium, with a 32% rise in a month. Other major decentralized applications, such as Jupiter DEX, Jito liquid staking and Sanctum protocol, registered 24%, 18% and 20% gains, respectively.
Related: DeFi Development Corp's Solana treasury exceeds $400M ...
While SOL ranks as the sixth-largest cryptocurrency by market capitalization, Solana is ahead of the other top layer-1 blockchains in TVL, though still far from the leader, Ethereum.
However, Solana’s $12.2 billion TVL surpasses that of the Ethereum layer-2 ecosystem , which includes Base, Arbitrum and Optimism. Overall, when the TVL of a DeFi platform rises, it boosts liquidity, popularity, and usability, which can positively affect prices.
Solana memecoin market cap gains 70%
The rise in Solana’s TVL mirrors an increase in memecoin market capitalization as these recovered across the board.
Most Solana-based memecoins have posted double-digit gains on the weekly time frame, as shown in the figure below. A majority of these tokens are up 15% to 30% from local lows.
As a result, Solana's collective memecoin market cap increased to $12.4 billion on Tuesday from $7.3 billion on June 22, a 70% climb in less than three months.
This rise in the prices of Solana-based memecoins was accompanied by increasing DEX activity on the layer-1 blockchain . The DEX volume on Solana attributed to memecoins jumped by over 73% over the last 24 hours to $817.3 million on Tuesday, per data from Blockworks Research.
The increase in memecoin activity on Solana indicates high network activity and rising usage, positively impacting demand and SOL price.
SOL’s V-shaped recovery targets all-time highs
SOL’s price action has been painting a V-shaped pattern on the weekly chart since January, as shown below.
A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.
SOL appears to be on a similar trajectory and now trades below a supply-demand zone between $200 and $240. A breakout here would increase the chances of the price rising to the neckline at $252 to complete the V-shaped pattern.
Beyond that, the next target would be the all-time high above $295, representing a 36% increase from the current price.
The relative strength index has increased to 62 at the time of writing from 42 in mid-June, suggesting that bullish momentum is picking up.
There’s increasing confidence in SOL’s ability to rally to new all-time highs among market commentators, with popular analyst Jussy saying that once the resistance at $220 is broken, the price could rally toward $270.
There is “still more upside to the first target of $250” for SOL, said fellow analyst Kepin in an X post on Tuesday, adding:
“The next target price will be $290-$300, and the ultimate bull target is $350.”
As Cointelegraph reported , technicals suggest SOL price could top at $1,000 this cycle, fueled by the approval of spot Solana ETFs in the US and institutional adoption through SOL treasuries .
