Organizations Accumulating Solana Following Firedancer Testnet Launch
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SOL has surged over 50% in the two weeks following the launch of the Firedancer Testnet, with organizations increasing their accumulation of this token.
Solana's recent surge, which saw SOL's value increase by over 50% in just two weeks, owes a substantial portion of its momentum to Coinbase, as per data provided by Paris-based Kaiko. Since October 25th, the cumulative volume delta (CVD) for SOL on Coinbase has surged by nearly $1 million, indicating a substantial influx of capital.
This positive CVD trend on Coinbase coincided with similar trends on Binance and Kraken earlier this week. However, the South Korean exchange Upbit has experienced negative CVD for the past two weeks.
The CVD metric is a valuable indicator of market sentiment, tracking the net difference between buying and selling volumes over time. Positive values signify a surplus of buying activity, while negative values point to the opposite.
Nonetheless, SOL's recent price gains have not yet translated into a significant increase in on-chain activity. In the past two weeks, the total value of assets locked in Solana-based DeFi protocols has decreased from 12.03 million SOL to 10.23 million SOL, the lowest level since April 2021, according to DefiLlama. While total value locked (TVL) is not a perfect metric, it is commonly used to assess the utilization of smart contracts.
Although there has been an uptick in volume on Solana-based decentralized exchanges and the number of active addresses on the network, these increases have not been substantial enough to justify the recent price gains, as highlighted by on-chain analyst Patrick Scott.
