Solana (SOL) rebounds from recent lows, backed by strong onchain metrics and derivatives data. Could SOL rally toward $300 and challenge its all-time high?

Solana Bounces Back: Recovery in Progress

Solana’s native token,  SOL has surged 8% since hitting a low of $222 on Nov. 26, following a sharp correction from its all-time high of $263.80 on Nov. 23. As of Nov. 27, SOL trades at $237.98, with onchain and derivatives data pointing to a potential bullish continuation.

Market Performance and Investor Sentiment

SOL Lags Behind Altcoin Gains

While  SOL recorded a modest 1% gain between Nov. 20 and Nov. 27, the broader altcoin market capitalization surged 12% during the same period. Leading tokens like Stellar (XLM), Celestia (TIA), and Uniswap (UNI) posted gains exceeding 40%, leaving some investors skeptical of SOL’s momentum.

Focus on Fundamentals

Despite lagging market performance, Solana’s strengthening fundamentals provide a bullish backdrop:

  • Total Value Locked (TVL): Up 48% in the past 30 days, significantly outpacing growth on BNB Chain (+14%) and Tron (+13%).

  • Key Drivers:

    • Jito liquid staking: $3.4 billion TVL (+44%).

    • Jupiter decentralized exchange: $2.4 billion TVL (+50%).

    • Raydium: $2.2 billion TVL (+58%).

Solana vs. Ethereum: Independent Growth Paths

Thriving in Separate Niches

Data suggests that Solana and Ethereum are growing without directly competing:

  • Ethereum: Dominates decentralized finance (DeFi) with Uniswap and CoW Swap volumes up 62% and 71%, respectively, in the past 30 days.

  • Solana: Leads in memecoin trading, with tokens like BONK and POPCAT driving speculative trading volumes.

Risks of Memecoin Dependency

While Solana’s memecoin dominance has fueled activity, it introduces volatility risks as speculative hype may not sustain long-term growth.

Optimism in Futures Markets

Futures Premium at 7-Month High

SOL futures premiums have reached an annualized 23%, the highest in seven months. This indicates strong market optimism, although excessive bullishness above 40% could amplify liquidation risks during price corrections.

Room for Growth Relative to Ethereum

With a current $113.7 billion market capitalization, Solana trades at a 73% discount compared to Ethereum’s $429.4 billion. This valuation gap, combined with robust onchain metrics, suggests further upside potential for SOL.

Can SOL Hit $300?

Solana’s (SOL) recovery, supported by rising TVL and bullish futures sentiment, sets the stage for further price appreciation. While challenges like memecoin reliance persist, SOL’s growing ecosystem and market optimism could pave the way for a run toward $300, particularly if broader market conditions remain favorable, according to Cointelegraph.

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