• Why a best-case scenario ripple effect makes sense for Solana’s measurements

  • Most of the market’s alts were trading in the green at the time of writing, owing to the rebound of Bitcoin and Ethereum. Solana was in the same situation. However, this alt had reason to rejoice: Socean, the long-awaited stake pool for Solana, was finally opened.

    Until now, SOL HODLers could not trade or transfer their staked tokens. However, the Socean stake pool now allows HODLers to participate in the DeFi market while still reaping staking profits. HODLers who deposit SOL in Socean will receive SOCN tokens, which may be utilized in the same way as SOL. Recently, a tweet elaborated on the subject, noting,

    “The SOL-USDC LP is now yielding 8% APY. Instead, if you offered liquidity in a SOCN-USDC pool, you would receive both staking and LP incentives, nearly doubling your gains. It won’t just be LPs: you’ll be able to borrow/lend/farm yield via SOCN.”

    In fact, the SOCN coin may eventually replace SOL as the de facto currency utilized in margining, lending, yield farming, and other DeFi developments in the ecosystem. However, before delving into the implications of the aforementioned change, let us first examine Solana’s current status.

    Growth, Dominance, and Trading Volume

    SOL’s price increased by more than 20% in a 24-hour period. At press time, the altcoin was valued at $34.51, with volume increasing after fluctuating between 190 million and 210 million in mid-July. In reality, it has been in the 550 million – 750 million area several times in the last six days.

    However, the altcoin’s dominance on crypto-related social media has recently weakened. The same dropped from 1.21 percent to 0.59 percent in the last 45 days. Social sentiment is an important metric for determining how hyped-up and outspoken an asset’s community is on social media. Typically, an increase in this statistic has a positive impact on the price.

    As a result, SOL’s social dominance must increase at this point.

    Surprisingly, Solana’s market cap domination peaked at 0.6 percent on June 27. However, the same has happened afterward. In fact, at the time of writing, Solana held a 0.53 percent share in the greater crypto-market.

    Activity for Development

    The altcoin’s development activity increased at a reasonable rate in April and May. However, this statistic has been declining since June. This is essentially a sign of halted ecosystem-centric growth. Furthermore, SOL was very next to Ethereum just two weeks ago. It was ranked seventh in the weekly GitHub development activity charts.

    However, at the time of writing, it had fallen to ninth place. Other altcoins, such as Cardano, Kusama, Polkadot, and Filecoin, have either maintained or improved their ranks throughout the same time period.

    Staking has the potential to raise demand for SOL.

    SOL is presently the third-most staked crypto-asset, according to Staking Rewards. It is only second to Cardano and Ethereum. At the time of publication, nearly 76 percent of SOL (a total of $13.09 billion) was staked.

    Even though on-chain indicators do not now paint a particularly positive image, staking on Socean has the ability to generate demand for SOL tokens. The same would have a knock-on effect on all metrics, potentially influencing Solana’s fate in the coming weeks.

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