Solana (SOL) is nearing its yearly high after an impressive 27% gain in July, with the price poised to challenge the $210 mark in the coming weeks. This surge is attributed not only to memecoin enthusiasm but also to Solana’s robust liquid staking ecosystem, which is significantly boosting onchain activity.
SOL/USD daily chart. Source: Trading View
Recent data indicates that Solana’s total value locked (TVL) jumped by 10%, reaching $5.42 billion, which has increased transaction volume and on-chain activity. Leading this charge are liquid staking projects Jito and Marinade, which saw their TVLs rise by 40% and 30%, respectively, over the past month.
The Rise of Liquid Staking Tokens on Solana
Liquid staking merges the benefits of staking and liquidity. Token holders stake their SOL in a smart contract or staking pool and receive liquid staking tokens (LSTs) like JitoSOL and mSOL. These LSTs can then be used to earn yields on other protocols or in decentralized finance applications.
Solana protocol rankings. Source: DefiLlama
Data from Dune Analytics shows that the total SOL deposited in liquid staking derivatives more than doubled in 2024. Staked LSTs rose from 163,827 to 807,712, marking a 393% increase between June 1 and July 26. Token Terminal also reports a 21% rise in daily active users and a 59% increase in weekly active users on Solana, indicating that the network’s growth is driven by more than just memecoins.
Will SOL Hit a New Yearly High?
SOL’s price action indicates bullish momentum, with the community anticipating a retest of its yearly high at $210. At the time of writing, SOL had breached a bullish double-bottom pattern, with overhead resistance at $202. Although Solana is currently correcting and trading below $190, the immediate retest target remains in the $200–$210 range. However, if SOL loses its support at $180, it may retest the previous swing low at $165.
Total staked LST chart. Source: Dune Analytics
Options trader Trader Wick remains optimistic, noting, “Solana is once again leading the crypto market rally. Now breaking out of resistance on a breakout arrow setup that usually starts brand new trends.”
In summary, Solana’s liquid staking tokens are significantly boosting on-chain activity and TVL, positioning SOL for a potential new yearly high in the near future.
