There are several key factors behind the price increase of $SOL today. First, Solana's liquidity staking has hit a record high! Data shows that since August 5, the total locked value (TVL) of liquidity staking has soared from US$3.2 billion to US$5.2 billion, accounting for more than 7% of SOL's market value. This not only proves that Solana is no longer just a memecoin, but also attracts more users with different use cases.
In addition, on-chain trading activity is also increasing rapidly. In the past few days alone, Solana's daily transaction volume has increased from 13,351 to 14,495, and the network activity has increased significantly. The more such interactions, the greater the demand for SOL, which naturally drives the price up.
Finally, short positions in the derivatives market are being liquidated crazily. About $3.2 million of SOL shorts were liquidated on October 11, and the entire crypto market has liquidated $58 million in the past 12 hours, of which $50 million is short. If SOL continues to rise to $150, it may also liquidate $113.3 million of shorts!
Therefore, SOL's performance is very impressive, and we continue to be optimistic about the future market!