{"id":382523,"date":"2021-12-17T20:30:17","date_gmt":"2021-12-17T17:30:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\/"},"modified":"2021-12-17T20:30:17","modified_gmt":"2021-12-17T17:30:17","slug":"3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\/","title":{"rendered":"# 3 reasons why Solana (SOL) price could see additional upside in 2022"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3dd2cf20f30\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3dd2cf20f30\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\/#There_is_strong_institutional_appetite_for_Solanas_ecosystem\" >There is strong institutional appetite for Solana&#8217;s ecosystem<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\/#Solana_has_the_third_largest_futures_market\" >Solana has the third largest futures market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\/#Solana_leads_in_TVL_users_and_derivatives_markets\" >Solana leads in TVL, users and derivatives markets<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Solana (SOL) price could see additional upside in 2022 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Solana (SOL) has become a top contender in the smart contract industry and in the past year the network&#8217;s total value locked (TVL) grew by $660 million and stretches across more than 40 decentralized <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications to hit an all-time high above $11 billion.<\/p>\n<p>Even with this growth, investors have reason to question whether the current $56 billion market capitalization is justified and how it compares to competing networks like binance smart chain (BNB), Avalanche (AVAX) and Polygon (MATIC).<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/e07a2e4a-e365-4b63-b5d6-44cf2f0bfa77.png\"><figcaption style=\"text-align: center;\"><em>Avalanche, Solana, Binance Coin, and Polygon, priced in USD. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>By analyzing the past 6-month price performance, there&#8217;s an apparent decoupling from Terra (LUNA), Solana and Avalanche when compared to other smart contract platform competitors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"There_is_strong_institutional_appetite_for_Solanas_ecosystem\"><\/span>There is strong institutional appetite for Solana&#8217;s ecosystem<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Solana&#8217;s market capitalization is more than double Avalanche and Terra which have $26 billion market caps. Searching Solana&#8217;s latest <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> on Cointelegraph yields an exciting array of institutional investments, ranging from the $314 million private token sale by Solana Labs in June, to an $18 million fundraise in September by Solana&#8217;s DEX project Orca.<\/p>\n<p>There&#8217;s solid evidence of a growing ecosystem judging by investor appetite. However, to understand how successful Solana&#8217;s scalability solution is, we have to evaluate its usage metrics.<\/p>\n<p>Looking at the number of active addresses on Solana&#8217;s dApps is a good place to start.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/38c5ef81-8012-4380-b8e0-49b7e98785c8.png\"><figcaption style=\"text-align: center;\"><em>Solana, Ethereum, Avalanche and Polygon 7-day most active dApps. Source: DappRadar<\/em><\/figcaption><\/figure>\n<p>Ethereum&#8217;s leading dApp by active addresses is Uniswap, which has 188,200. Therefore, Raydium\u2019s 97,600 weekly users is rather impressive considering it was launched just 10 months ago. Meanwhile, back in Feb. 2021, Uniswap already held over $4.3 billion TVL.<\/p>\n<p>As for Solana\u2019s NFT marketplace Magic Eden, its 58,400 weekly active addresses also account for more than half of Ethereum\u2019s OpenSea, the sector\u2019s absolute market leader in volume and users activity.<\/p>\n<p>Avalanche user activity is highly concentrated on the Trader Joe decentralized finance app, but its $715 million weekly volume pales in comparison to Uniswap\u2019s $22.1 billion or Raydium\u2019s $12.5 billion. The same can be said by Polygon which has $573 million in trading activity at its QuickSwap DEX.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_has_the_third_largest_futures_market\"><\/span>Solana has the third largest futures market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Solana currently holds the third largest futures open interest, which is the most relevant metric in derivatives contracts. This indicator aggregates the total number of contracts held by market participants regardless of the recent trading activity.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-12\/6479752e-d6db-4873-9baa-5c40fd74765a.png\"><figcaption style=\"text-align: center;\"><em>Solana futures aggregate open interest. Source: CoinGlass<\/em><\/figcaption><\/figure>\n<p>Despite the sharp drop since the Nov. 8 peak at $1.9 billion, the current $860 million futures open interest ranks Solana the third derivatives market by size. For example, Binance Coin (BNB) futures holds $520 million, followed by Terra (LUNA) with $430 million.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Solana_leads_in_TVL_users_and_derivatives_markets\"><\/span>Solana leads in TVL, users and derivatives markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Undoubtedly, there&#8217;s an impressive amount of activity coming from Solana&#8217;s on-chain data and derivatives markets. The network\u2019s TVL increased by 15x over the past 6 months and Solana&#8217;s dApps users is nearly half the amount of users on the Ethereum network.<\/p>\n<p>Solana seems to be quickly closing the gap in three important metrics: TVL, active users, and derivatives markets. Competitors like Terra, Avalanche and Polygon seem a long way behind, which possibly justifies the market capitalization premium.<\/p>\n<p><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-solana-sol-price-could-see-additional-upside-in-2022\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Solana (SOL) price could see additional upside in 2022 &#8221; Solana (SOL) has become a top contender in the smart contract industry and in the past year the network&#8217;s total value locked (TVL) grew by $660 million and stretches across more than 40 decentralized applications to hit an all-time high above&#8230;<\/p>\n","protected":false},"author":1,"featured_media":382524,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvMmM1YTgxN2ItNmI1My00MjExLWJiODgtYWE5NDMyYWRlNThlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,88119,120396,74863,78168,75916,82402,74939,113408,75434,92498,73785],"class_list":["post-382523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-altcoin-watch","tag-avalanche","tag-cryptocurrencies","tag-dapps","tag-dex","tag-ether-price","tag-market-analysis","tag-polygon","tag-smart-contracts","tag-solana","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/382523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=382523"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/382523\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/382524"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=382523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=382523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=382523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}