Solana's Market Position Strengthens Amidst DEX Volume Surge

According to Cointelegraph, Solana's native token, SOL, has faced challenges in maintaining its bullish momentum after reaching $134 on April 14. Despite being 57% down from its all-time high, analysts suggest that the altcoin's rally may not be over. The decline in decentralized applications (DApps) activity has contributed to the price drop, but the growth in deposits on the Solana network is seen as a potential catalyst for short-term price increases. Solana has emerged as the second-largest blockchain by total value locked (TVL), reaching $6.9 billion. Over the seven days ending April 16, Solana gained 12%, surpassing competitors like Tron, Base, and Berachain. Notable developments include a 30% increase in deposits on Sanctum, a liquid staking application, and a 20% growth on Jito and Jupiter. Solana's decentralized exchange (DEX) volume has also outpaced Ethereum's layer-2 solutions, with trading activity totaling $15.8 billion, exceeding Ethereum's by over 50% during the same period. Solana reclaimed the top spot in DEX activity, surpassing Ethereum after a 16% gain over seven days. This was driven by a 44% increase in volume on Pump-fun and a 28% rise on Raydium. In contrast, volumes on Ethereum's largest DApps—Uniswap, Fluid, and Curve Finance—declined. A similar trend was observed on the BNB Chain, where PancakeSwap, Four-Meme, and DODO experienced reduced volumes compared to the previous week. Solana's growth is not limited to DEX performance, as other DApps like Ondo Finance and Exponent have also shown significant increases in total value locked. Analysts are optimistic about the potential approval of a Solana spot exchange-traded fund (ETF) in the United States in 2025. However, expectations for substantial inflows are tempered by a general lack of interest from institutional investors and the recent underperformance of similar Ethereum ETF instruments. If approved, the spot ETF could bolster Solana's presence, particularly if the U.S. government's Digital Asset Stockpile plans are realized. Investors are also awaiting the audit of U.S. federal agencies' crypto holdings, initially expected by April 7. Despite missing this deadline, there are no current plans for the government to acquire cryptocurrencies other than Bitcoin. While there are few catalysts to justify a rally to $180, a level last seen on March 2, the increase in TVL and DEX market share alone may not be sufficient to drive SOL's price to outperform the broader market. External factors and a large influx of new participants into the crypto ecosystem would be necessary for such a price surge.