Solana Witnesses a Noteworthy Surge in Total Value Locked

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Solana has observed a significant surge in its Total Value Locked (TVL), reaching almost $340 million this Monday, according to data from Defi Llama. 

Solana rockets

The past 24 hours witnessed a more than 4% increase in Solana’s TVL. Solana’s native token, SOL, has also experienced an excellent week, marking a 29% increase since its lowest point in September.

SOL benefitted really well from yesterday’s news that a U.S. government shutdown had been averted. As much as a 14% increase in price was seen on Sunday, and at $24.20 SOL is consolidating at resistance.

FTX selling headwind

The recent recovery is certainly a boon for holders of SOL. However, still to come is the potential impact on SOL’s price following the approval for the FTX estate to liquidate its crypto holdings. 

According to a report in Decrypt, the estate reportedly holds about $1.2 billion in SOL, with as much as 22 million SOL tokens (approximately valued at $400 million) being unlocked and available for sale, representing close to 4% of SOL’s total supply. An additional 40 million to 44 million tokens, or around $860 million, are currently staked, with another $17 million worth of SOL tokens anticipated to be unlocked monthly for the next four years.

Resistance barriers

With the headwind of a potential incoming sale of SOL tokens, Solana will certainly have its work cut out to break through the resistance barrier of $26 and if it manages to achieve this, $30 would be the next barrier.

Bitcoin and ethereum also have their token selling overhangs, yet it does appear that the crypto bull market is gathering steam regardless. Solana is probably regarded as the next best competitor to ethereum and should the market take off there is a good probability of some gains from what is a really beaten down asset.