- Solana was exposed to the liquid staking derivative sector through Jito.
- Sentiment around Solana continued to decline as prices fell.
Despite recent volatility in the crypto market and declining interest in the DeFi sector, there has been one space that has seen tremendous growth. This is the Liquid Staking Derivatives (LSD) vertical, which saw an enormous rise in interest after the Shapella upgrade.
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Solana gets in on LSD frenzy
Recent data indicated that Solana [SOL] could soon benefit from LSD sector’s growth. Data from Token Terminal revealed a notable upsurge in activity for Jito, an LSD protocol operating on the Solana network.
This surge in activity propelled net deposits within the protocol to reach an unprecedented peak, showcasing an impressive spike of 195.6% over the last six months.
Source: Token Terminal
The uptick in activity on the protocol helped in terms of TVL as well. According to Artemis’ data, the TVL on Solana grew significantly over the last few months. This was partly due to the success of LSDs on the protocol.
Source: Artemis
Despite the success of Jito on Solana, the overall social activity in favor of the protocol continued to decline. According to Lunar Rush’s data, social engagements on Solana protocol fell by 53% over the last week, while the number of social mentions declined by 47% during the same period.
The weighted sentiment for Solana also fell, implying that the negative comments around Solana outweighed the positive ones on the social front.
Source;Santiment
Sellers have no SOL
SOL’s price was also impacted by declining sentiment. After testing the $32.44 resistance level on the 14 July, the price of SOL fell by 29.09%. The price established a bearish trend by exhibiting multiple lower highs and lower lows during this period.
Realistic or not, here’s SOL’s market cap in BTC’s terms
At press time SOL was trading at $22.77.
The RSI for SOL fell and was at 37.12 at press time, indicating that momentum was with the sellers. The price of SOL may go on to test the $21.49 level if the trend continues. At press time SOL was trading at $22.77.
Source: Trading View
