Solana (SOL) is having its significant rally, with its price closing in on the $200 level, spurred by a large growth in network usage and decentralized finance (DeFi) interaction. On May 14, 2025, SOL is priced at approximately $182.95, up 7.53% from the last 24 hours and 25.42% over the last week.
DeFi Growth and Network Utilization
The Solana ecosystem has seen a significant capital inflow into its DeFi platforms, with the Total Value Locked (TVL) rising from $7.5 billion to $9.6 billion in the past two weeks. This increase is due to increased activity in protocols like Marinade, Jito, and Raydium, which have recorded rises of 60%, 44%, and 85%, respectively.
In addition, trading volumes on decentralized exchanges built on Solana have increased, with weekly volume rising from $18 billion to $22 billion. This increase signals an expanding user base and rising liquidity on the network.
Around 65% of all SOL tokens are staked, effectively shrinking the circulating supply and potentially causing upward price pressure as demand increases.
Technical Indicators and Market Sentiment
Technical analysis indicates that SOL is trading higher than its 10-day, 20-day, 50-day, and 200-day moving averages, all of which indicate a bullish trend. The Relative Strength Index (RSI) is at 71, indicating that the asset is approaching overbought levels, which can trigger short-term consolidation or a short-term correction.
The Bollinger Bands are expanding, showing higher volatility, with SOL getting close to the upper band. A strong breakout above the resistance level of $185, coupled with high trading volumes, may pave the way for a quick journey towards the $200 target.
Open interest in Solana futures has increased by more than 11%, indicating increasing speculative interest and optimism in the asset’s bullish trend. The funding rate stands at 8%, highlighting bullish sentiment among traders.
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