Solana (SOL) has surged to become one of the most liquid altcoins on the leading crypto exchange Coinbase, according to recent findings by market intelligence firm Kaiko. The token boasts over $3 million in liquidity, overshadowing prominent altcoins like DOGE, XRP, and Matic. Despite the recent 6% drop in Solana price amid market-wide pessimism, SOL’s solid fundamentals and introduction of a tokenized version of Bitcoin on the Solana network signal promising times ahead.
— Kaiko (@KaikoData) August 16, 2023
Surpassing Competitors in Liquidity
Liquidity refers to the ease with which an asset can be converted into ready cash without affecting its market price. The more liquid an asset is, the more efficiently it can be transformed into cash.
SOL’s superior liquidity on Coinbase makes it an attractive investment option, as it can easily be bought or sold without causing significant price fluctuations. With over $3 million in liquidity, SOL has surpassed DOGE, which has just above $2 million, and XRP and Matic, which each have just over $1 million.
Altcoin liquidity chart on Coinbase, Source: Kaiko
Despite its liquidity advantage, Solana has not been immune to the broader market’s recent downturn. The Solana price has declined by 6% to $23.39, resulting from speculation that the SEC will delay its decisions regarding Bitcoin ETF applications until 2024. Over the past week, SOL has lost 5%, down 15% in the past month. However, despite this short-term setback, SOL remains fundamentally strong.
A Glimpse of Optimism for Solana
There are plenty of reasons for optimism regarding Solana’s future. A major highlight is the recent launch of a tokenized version of Bitcoin, known as tBTC, on Solana’s network. Like Wrapped Bitcoin (WBTC) on Ethereum, tBTC will allow BTC holders to utilize their Bitcoin value across various DeFi platforms and applications, increasing usage for Solana.
Solana has been steadily recovering this year after a challenging 2022 marked by network outages. The network now boasts a consistent 100% uptime, and the introduction of new launches and use cases, like tBTC, is expected further to support Solana’s consistent recovery throughout the year.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.