Sunny skies for Solana in 2024?

Announcement posted by Bitget 17 Dec 2023

Why is Solana Back in Stardom?

Solana, the proof of stake blockchain focused on developing scalable infrastructure for decentralised applications (dapps), is clearly on the rise and becoming, once again, a darling of the DeFi sector. Since the start of January, the price of SOL, its native cryptocurrency, has risen over 459% (at the time of writing).

Solana's vision is to become the preeminent platform for global finance with an infrastructure that does not have the speed and throughput limitations of Ethereum. However, throughout the 2022 crypto bear market, Solana faced a number of setbacks, the most prominent of which was its close association with Sam Bankman-Fried's failed FTX. Both FTX and its research arm, Alameda, had sizable positions in Solana. FTX, Alameda, and Solana had collaborated on several projects that included the launch of the Serum Exchange, which was a DEX for trading crypto assets on Solana. Another setback was a sharp decline in SOL's price and TVL throughout 2022. From January 2022 to Jan 2023, SOL's price declined by more than 94%, with its TVL dropping almost 97%. However, the conclusion of SBF's trial brought much-needed relief to Solana and ended its association with the failed crypto exchange.

Solana's strong market position
Solana is poised to enter 2024 with a strong market position. With a market cap of US$31.8 billion and a Total Value Locked (TVL) of $1.059 billion, Solana is certain to continue its current growth trajectory. Bitget Research Chief Analyst, Ryan Lee highlights several key aspects to be considered:

Macro-Economic Perspective: In the latest and final interest rate meeting of the Federal Reserve for 2023, the overall stance was dovish. It is expected that in 2024, the Federal Reserve may cut interest rates by 75-125 basis points. The liquidity released from this could be a significant positive factor for the cryptocurrency industry. With ample funds, token prices in the cryptocurrency industry may experience a general increase. Solana, as a leading public blockchain in the industry, is likely to attract considerable attention from a wide range of investors.
Solana's DeFi Ecosystem: Multiple DeFi protocols within the Solana ecosystem are beginning to conduct airdrops for the community. As Solana's TVL gradually increases, the activity of various protocols is also showing initial signs of growth. In 2024, more DeFi protocols are expected to issue tokens on Solana, further encouraging a greater influx of users into the Solana ecosystem.
Solana's New Narrative: DePin is the new narrative in the Solana ecosystem. DePin, short for Decentralised Physical Infrastructure Networks, involves integrating hardware into decentralised networks to provide physical services and introduces tokens for incentives. DePin projects within the Solana ecosystem are performing well and have a high degree of alignment with the ecosystem. There is a significant possibility that these DePin projects will play a crucial role in shaping the new narrative for Solana in the next bull market.

The Solana ecosystem is also highlighted as some of the most promising cryptocurrencies for 2024. Contrary to concerns following FTX's troubles, Solana did not spiral into a decline. Instead, it stabilised and gradually climbed from its low point of US$7.85 with the rebound of Bitcoin at the beginning of the year.

TVL in the Solana ecosystem doubled in a single month, surpassing US$900 million. However, during the peak in November 2021, the Solana ecosystem's TVL approached nearly US$10 billion, indicating substantial room for Solana's recovery.

Generous airdrops from projects like JUP, PYTH, and JTO have heightened market expectations for Solana ecosystem project airdrops, leading to a general rise in the ecosystem's token values.

Tokens such as SOL, RAY, ORCA, PYTH, BONK, holding significant positions in Solana's decentralised exchanges (DEX), oracle, and meme sectors respectively, are all worth keeping an eye on.

VanEck, the global investment management company, also projects Solana to become one of the top three blockchains in terms of market cap, TVL, and active users in 2024. With strong technical performance and support from the financial and development communities, Solana represents an attractive option for investors. Solana's strong DeFi ecosystem is also a testament to the market's growing confidence in its platform.

Solana DEX aggregator
Jupiter is a Solana DEX aggregator, developed specifically to facilitate efficient and seamless trading across various decentralized exchanges on the Solana blockchain network. Jupiter acts as a one-stop platform and combines liquidity from multiple Solana-based DEXes, offering users access to improved trade execution by sourcing the best prices and reducing slippage. Jupiter's objective is to streamline the decentralized trading experience on Solana and offer improved liquidity, reduced fees, and better trade execution.

Jito staking protocol
Solana also had a highly successful staking protocol launch with JTO, Jito's token. In early December, JTO hit $1.1 billion in trading volume within just 24 hours of its release. It also had a token airdrop of 4 billion JUP, an Ethereum token for the Jupiter project. Jito enables users to stake their Solana (SOL) tokens while maintaining liquidity. It allows token holders to earn staking rewards without locking their assets in a staking contract.

While Jito focuses on enabling users to stake SOL tokens and maintain liquidity, Jupiter is focused on aggregating liquidity across various decentralized exchanges on Solana to facilitate optimized trading.

SOLS enhance interoperability and streamline token development
SOLS (SOLS token) is Solana's first SPL-20, short for Solana Program Library-20, inscriptions project, providing two-way cross-chain, helping users easily automatically swap NFTs with many types of tokens within the Solana network. This helps expand access to the DeFi ecosystem of CEX, DEX, and LP providers.

Learn More At Bitget Academy

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How To Buy SOLS on Bitget

SOLS is now trading in the Bitget Innovation and Solana Ecosystem Zone. You can buy crypto on Bitget with your credit/debit cards, bank transfer and other payment methods.

About Bitget

Established in 2018, Bitget is the world's leading cryptocurrency exchange and Web3 company. Serving over 20 million users in 100+ countries and regions, the Bitget exchange is committed to helping users trade smarter with its pioneering copy trading feature and other trading solutions. Formerly known as BitKeep, Bitget Wallet is a world-class multi-chain crypto wallet that offers an array of comprehensive Web3 solutions and features including wallet functionality, swap, NFT Marketplace, DApp browser, and more. Bitget inspires individuals to embrace crypto through collaborations with credible partners, including legendary Argentinian footballer Lionel Messi and official eSports events organiser PGL.

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