Solana (SOL) Primed to End July With a 30% Monthly Return

The price of Solana’s SOL coin is primed to end July with a 30% monthly return and looks poised to challenge its yearly high of around $210 over the next few weeks.

Solana’s SOL coin is rallying and setting itself up for a strong finish to July with a 30% monthly return. The price of SOL is now $183 and looks poised to challenge its yearly high of around $210 over the next few weeks.

While most of the community attributes SOL’s success to Solana’s memecoin euphoria, a deeper analysis of the network reveals a different narrative. In addition to memes, the Solana network is also experiencing a strong onchain narrative around liquid staking. Let’s take a closer look at how this current trend is developing on the Solana network.

Solana DeFi is led by liquid staking tokens

As reported by Cointelegraph, Solana’s total value locked (TVL) surged 10% to reach $5.42 billion. This led to an increase in transaction volume and onchain activity.

Among Solana protocols, liquid staking projects Jito and Marinade led the way with a 40% and 30% increase in TVL, respectively, over the past month.

Holder can stake their tokens in a smart contract or staking pool and receive a token representing their staked SOL. This token is called a liquid staking token (LST) and can be used to generate yields on other protocols or in decentralized finance applications. In the case of Jito and Marinade, these tokens are JitoSOL and mSOL, respectively.

According to Dune Analytics, the total amount of SOL deposited in liquid staking derivatives more than doubled in 2024. Staked LSTs increased from 163,827 to 807,712 between June 1 and July 26, indicating a 393% rise.

Solana’s daily and weekly active users also increased by 21% and 59%, respectively, according to data analytics platform Token Terminal. This increase in active users coincides with the rise in TVL for Jito and Marinade, as mentioned above. Thus, it can be inferred that memecoins are not the only sector currently attracting users to the Solana network.

Solana price: Will SOL reach a new yearly high this week?

The price action of SOL shows bullish momentum, and the community is expecting the price to retest its yearly high at $210. At the time of writing, SOL had breached a bullish double-bottom pattern, with current overhead resistance at $202.

The overhead resistance is quite weak, and there is a high probability of a retest of the yearly high. However, Solana is currently experiencing a correction, falling below the $190 mark.

If Solana continues to follow a bullish trend, its immediate retest target remains in the $200–$210 range. On the other hand, if it loses its immediate support zone at $180, the altcoin may retest its previous swing low price at $165.

Meanwhile, options trader Trader Wick is leaning bullish, saying that SOL/USD is once again leading the crypto market rally.

“Solana outperforming on the bounce as usual,” he noted.

This article does not contain investment advice or recommendations. Every investment and trading move carries a risk, and readers should conduct their own research when making a decision.