Using on the again of Bitcoin and Ethereum’s restoration, a lot of the market’s alts had been buying and selling within the inexperienced on the time of writing. It was the identical case with Solana too. Nevertheless, this alt had one thing extra to cheer about – Socean, the much-awaited stake pool for Solana, was launched just lately.
Till now, SOL HODLers weren’t permitted to commerce or switch their staked tokens. However now, the Socean stake pool will enable HODLers to take part within the DeFi market and concurrently relish their staking rewards. Depositing SOL in Socean would fetch HODLers SOCN tokens, and these tokens can be utilized identical to SOL. Elaborating on the identical just lately, a tweet famous,
“The SOL-USDC LP is at the moment ~8% APY. In the event you as an alternative supplied liquidity in a SOCN-USDC pool, you’ll get each staking AND LP rewards–nearly doubling your returns. It’s not simply LPs: you’ll have the ability to use SOCN to borrow/lend/farm yield.”
Actually, with time, the SOCN token would possibly find yourself changing into the de-facto currency (changing SOL) utilized in margining, lending, yield farming, and different DeFi improvements within the ecosystem. Earlier than diving into the affect of the aforementioned growth, nonetheless, let’s first analyze the present state of Solana.
Growth, Dominance & Buying and selling Quantity
SOL’s value registered an uptick of over 20% in a 24-hour window. The altcoin was valued at $34.51 at press time, with its quantity selecting up tempo after oscillating between 190 million and 210 million vary in mid-July. Actually, the identical managed to the touch the 550 million – 750 million vary fairly just a few occasions during the last six days.
Nevertheless, the altcoin’s dominance on crypto-related social media has been fairly fragile of late. Within the final 45 days, the identical recorded a drop from 1.21% to 0.59%. Social sentiment is a key yardstick that helps in assessing how hyped-up and vocal an asset’s neighborhood is on social media. Often, most of the time, an increase on this metric rubs off positively on the value.
Therefore, at this stage, SOL’s social dominance must hike.
Apparently, Solana’s market cap dominance stood at its 0.6% ATH on 27 June. Nevertheless, the identical has been on the autumn since. Actually, on the time of writing, Solana loved dominance of simply 0.53% within the broader crypto-market.
The altcoin’s growth exercise rose at an honest clip over April and Might. Nevertheless, since June, this metric has additionally been dropping. That is basically indicative of stalled ecosystem-centric developments. What’s extra, simply two weeks again, SOL stood proper subsequent to Ethereum. It occupied the seventh spot on the weekly GitHub growth exercise charts.
Nevertheless, on the time of writing, it had slipped right down to the ninth place. Over the identical timeframe, different altcoins like Cardano, Kusama, Polkadot, and Filecoin have both retained their rankings or have stepped up.
GitHub Weekly Growth Exercise:
#1: 414 Cardano
#2: 310 Kusama
#3: 310 Polkadot-new
#4: 276 File-coin
#5: 242 Gnosis-gno
#6: 241 Ethereum
#7: 225 Close to-protocol
#8: 221 Standing
#9: 188 Solana
#10: 180 Elrond-egld
— ProofofGitHub (@ProofofGitHub) July 30, 2021
Staking can improve demand for SOL
For now, as per Staking Rewards, SOL is at the moment the third-largest staked crypto-asset. It stands behind solely Cardano and Ethereum. At press time, near 76% of SOL (amounting to $13.09 billion) was staked.
Despite the fact that on-chain metrics don’t share a really bullish image for the time being, staking on Socean has the potential to extend the demand for SOL tokens. The identical would have a ripple impact on all of the metrics and might find yourself altering Solana’s destiny over the approaching weeks.