Stablecoin Supply on Solana Jumps 8%, SOL Price Back At $72

After facing a major price drop to $66 earlier on Monday, December 11, the Solana (SOL) Price has recovered quickly by 10%, currently trading at $72. The recent rally in Solana has been backed by strong DeFi activity taking place within the Solana ecosystem. Over the last two months, the Solana price has made nearly 5x gains.

Stablecoin Supply on Solana Jumps By 20%

DeFiLlama reports a notable surge in the supply of stablecoins on the Solana blockchain, recording an 8% increase to reach $1.676 billion in the past week. The second-largest stablecoin on the chain, USDC, experienced a substantial 20% growth, reaching $735 million. However, the supply of USDT remained largely unchanged. Concurrently, SOL has witnessed an impressive surge of over 20% in value over the past week.

As of press time, the Solana (SOL) price is trading at $71.16 with a market cap of $30.3 billion. The Solana (SOL) price remains robust above $66, supported by a prominent bullish trend line on the 4-hour chart against the USD. This trend line converges with the 50% Fibonacci retracement level, aligning with the upward movement from the $53.50 swing low to the $77.72 high. Upside resistance is evident at $72.00, followed by a more significant hurdle at $75.00.

The key resistance is presently situated at $78, and a successful breach could signal a broader uptrend. Subsequent resistance levels lie near $82.50 and $86.52. In case SOL encounters difficulty surpassing the $72.00 mark, downward pressure may persist.

Initial support is expected around $68.00, with primary support at $65.00, coinciding with the trend line. A breach below this level might lead to a test of $62, and a subsequent close under $62 could trigger a decline toward the $55 support in the short term.

DeFi and NFT Developments

According to DeFiLlama data, Solana’s Total Value Locked (TVL) currently stands at $912.62 million, constituting nearly 3% of Ethereum’s TVL. The upswing in Solana’s TVL over the last six months can be attributed to the emergence of new DeFi projects on the platform and a series of airdrops within the SOL ecosystem.

Notably, @0xGumshoe, a Solana analyst and researcher points out that Solana demonstrates greater capital efficiency compared to Ethereum. Despite Ethereum boasting a higher TVL than many other chains, Solana is reportedly responsible for 70% of Ethereum’s Decentralized Exchange (DEX) volume.

Recent data highlights intriguing shifts in the NFT sales landscape within the blockchain arena. While Ethereum has traditionally held the lead in the NFT market, current statistics indicate a notable rise for Solana. Ethereum’s NFT sales have dipped to $11.4 million, presenting a stark contrast to Solana’s impressive sales nearing $16 million.

Solana’s NFT marketplace is witnessing a surge in activity, with Tensor emerging as a prominent player. The platform has achieved a monthly trading volume of approximately $1 million, surpassing Magic Eden. Tensor now commands a leading position, holding around 60% of Solana’s total NFT market share.