DeFi
SOL set for bullish August amid anticipated developments, says Zeta Markets founder
Key points to remember
- Solana’s TVL surpassed $10 billion for the first time since December 2021.
- Solana-based DEXs have surpassed Ethereum in monthly spot trading volume.
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Solana’s decentralized finance (DeFi) ecosystem has been gaining momentum over the past month. On July 28, the total value locked (TVL) on-chain surpassed $10 billion for the first time since December 2021. This move, coupled with some upcoming developments, could propel Solana and its native token SOL even further in August, according to Zeta Markets founder Tristan Frizza.
“In the current cryptocurrency cycle, SOL has had an incredible run, rebounding from its lows of $8 after the FTX collapse last year. Many now consider SOL to be the third-best cryptocurrency after BTC and ETH, with potentially higher upside potential,” Frizza noted.
Solana-based decentralized exchanges have surpassed Ethereum for the first time in terms of monthly spot trading volume, according to data Notably, Solana’s on-chain derivatives volume showed the most significant monthly growth among the largest blockchains by TVL, jumping 105%.
Therefore, DeFi activity coupled with partnerships with companies like Stripe, Shopify, and Circle, as well as the filing of the first Solana exchange-traded funds (ETFs) in the US could give SOL a significant boost.
“In particular, the recent launch of Ethereum ETFs could create a ‘buy the rumor, sell the news’ type of event, which could potentially lead to increased anticipation for Solana ETFs,” said the Zeta Markets founder.
Moreover, as reported According to Crypto Briefing, the SEC has agreed to reconsider the security label assigned to some cryptocurrencies previously in its lawsuit against Binance, and this includes SOL. Thus, this could increase the appetite for SOL among risk-averse investors, Frizza added.
Finally, Frizza points out that the Breakpoint convention is taking place in September and investors could buy SOL in August to speculate on possible price increases during the event. Breakpoint is the largest annual event in the Solana ecosystem, and various developments could push SOL’s price higher.
“In the short term, Solana is hosting its annual Breakpoint conference this September. Before and in parallel, the foundation and many protocols building on Solana are strategically scheduling their releases and major announcements. We can expect a rush to market with strategic and significant announcements from many teams, which will generate a huge surge in interest and attention for Solana as a whole,” Frizza concludes.
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