Solana Crypto Hits $1B DEX Volume Milestone, Is $600 Possible?

Solana has hit a massive milestone with $109 billion in DEX volume for November, showing strong market activity. As Solana’s total value locked (TVL) grows alongside this surge in trading volume, SOL’s price is heading toward $600, with optimism surrounding its future growth.

Solana DEX volume surpasses $1B, setting a new monthly record.

With six days left in the month, Solana’s monthly decentralized exchange (DEX) volume now exceeds $1 billion, with 109.73 billion flowing through DEXes.

It is a great step for Solana to show how it is the marketplace leader for DeFi. A volume spike, particularly in November, shows a massive difference from prior months and indicates the market is moving as Solana continues its recovery from the tumult of 2022.

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The surge in DEX activity on Solana coincides with typical developments in the crypto market overall, as more people and institutions seek to trade in decentralized platforms.

After garnering attention for its speed and low transaction costs, Solana’s blockchain has become a popular choice for decentralized applications (dApps) and users looking to be efficient. Solana is gaining momentum and is currently on its way to the $600 target.

Solana Crypto Faces Bearish Momentum, Eyes on $223 key Support Level

Currently, Solana is consolidating on the way down to a major support zone. The price has been plunging lately, recently touching $223 before giving some support and now testing it again.

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The dotted blue line above shows the level of $264 as a key resistance zone, above which Solana could potentially hit as it tries to rebound from the recent support.

On a short-term note, some bearish momentum is being exhibited by TSI, which is displaying a negative at -7.03.

Despite that, the RSI (Relative Strength Index), however, is at 41.73 at present, which means the price isn’t overbought or oversold but rather near the neutral zone.

That means the market is in a holding pattern, waiting for more catalysts to get the ball rolling one way or the other.

If the price holds above $223 looking ahead, recovery is possible. The next important resistance in sight is at $264.

A close above $264 could signal a breakout, opening the door for further gains to the $280 region. But if $223 fails, we could see further downside to retest $210 or even $200, where there is some stronger support.

TVL Rebounds in 2024, Closing in on 2022 All-Time High

In 2021, Solana’s Total Value Locked (TVL) took off and topped over $10 billion. But TVL saw a sharp decline in 2022 as it peaked and crashed down sharply soon after.

The Solana TVL hit a low point in mid-2023, going below $1 billion.

However, in 2024, this trend turned around as TVL from the beginning of the year showed a steady increase, indicating renewed interest and growing activity on the Solana blockchain.

The TVL is about to close in on the November 2022 highs, indicating a strong recovery and investor confidence in the ecosystem as of November 2024.

If this trend continues, it may reflect the optimism in the market for Solana’s scalability and future growth as more decentralized applications (dApps) and DeFi are adopted on the network.

With TVL having risen substantially in 2024, reflecting an overall more bullish view of the Solana ecosystem in light of broader trending growth in the DeFi space, the ecosystem could see continued growth.

This is a good indicator that Solana is regaining their standing as a top blockchain for decentralized finance, and their TVL may soon surpass the high recorded in November 2022 if this momentum keeps going like that.

Funding Rate Peaks as Price Surges Above $200

Notably, as the price of Solana rose above $200 in mid-October, the OI-weighted funding rate also spiked, indicating high demand for long positions in the futures market.

This means that with the price increasing, more traders are leveraging long positions. An optimistic perspective from traders is expressed in the funding rate that peaks in early November.

The funding rate, however, peaked and saw some corrections, particularly at November 15th, possibly due to profit taking or liquidation through a small price range.

Although we have seen these fluctuations, the fact that the positive funding rate holds and that price is still moving in an uptrend indicates that the market is still bullish, with longs favored.