Solana (SOL) price is up on Oct. 11, trading above $144 and up 5% over the last 24 hours, recouping all the losses made over the last two days.
The upward momentum aligns with a broader cryptocurrency market rally and improving fundamentals within the Solana ecosystem.
Let’s look at the factors driving SOL price up today.
Solana liquid staking hits all-time high
SOL’s price rally on Oct. 11 follows an increase in user engagement with the network through activities such as liquid staking, debunking the narrative that the Solana blockchain is only about memecoins.
According to Dune data, the total value locked (TVL) for liquid staking on Solana has been skyrocketing since Aug. 5, surging from $3.2 billion to $5.2 billion on Oct. 10. This represents more than 7% of SOL’s market capitalization, marking a new all-time high.
Liquid staking protocol JITO has the biggest share of the ecosystem, with $1.88 billion of TVL (45.2% of the ecosystem’s total supply). It is followed by Marinade, with $742.3 million (17.8%), and Jupiter, with $477 million, or 11.5%.
This is an indication that Solana is capable of attracting users with different use cases besides memecoins.
However, memecoins continue to drive the majority of activity on the chain with data from Pump.fun, Solana’s memecoins generator, showing a sharp increase in the number of transactions deployed on the network over the last few days.
The spike in onchain transactions on Solana indicates heightened network activityand growing adoption. More user interaction with the platform leads to increased transactions and network usage, driving demand for SOL and positively impacting its price.
Futures liquidations back SOL’s recovery
SOL’s price rally on Oct. 11 was followed by an uptick in liquidations in the altcoin’s derivatives market.
According to CoinGlass data, approximately $3.2 million in SOL short positions were liquidated on Oct. 11, with the tally continuing at the time of publication. Meanwhile, a total of $58 million in leveraged positions has been liquidated across the crypto market over the last 12 hours, with $50 million being short positions.
Additional data from CoinGlass revealed that a further $113.3 million would be liquidated if SOL rises to $150.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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