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    Solana’s SOL Token Rises 5.3%, Outpaces Ethereum in DEX Activity and Fees as Market Eyes US Elections and Fed Moves

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    Solana’s native token, SOL, has seen growth recently, increasing 5.3% to over $167 amid Bitcoin’s rise. Current data suggests SOL’s rally may continue. Solana is leading in trading volumes on decentralized exchanges (DEXs), causing increased growth and adoption. Its weekly DEX activity is notably higher than any of Ethereum’s solutions. Solana also generated near similar amounts in fees to Ethereum, despite having fewer deposits. Its total value locked (TVL) increased by 38%, and SOL holders enjoy a 6.5% return. However, whether this bullish sentiment will continue hinges on factors such as the US presidential election results and Federal Reserve decisions.

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    Solana’s native token, known as SOL, started the day off strong with a 5.3% uptick to more than $167. This climb coincided with Bitcoin’s rise to $70,550 during the US election day rally. Many cryptocurrency enthusiasts want to see SOL reach $200. 

    Right now, data from the blockchain and derivatives market hint at SOL’s rally possibly continuing for a short while. 

    Solana is currently leading in terms of trading volumes on decentralized exchanges or DEXs, indicating lots of activity and transactions. This is encouraging more growth and adoption by more users and traders.

    Recent information highlights Solana’s advantage when compared to the Ethereum network. Impressively, none of Ethereum’s secondary solutions have come close to Solana’s $11.86 billion in weekly DEX activity, which showcases Solana’s competitive strength.

    In the last week, Solana has generated $20.5 million in fees, according to DefiLlama, getting close to Ethereum’s $22.6 million. This is noteworthy when you consider that Ethereum’s network has almost eight times as many deposits as Solana’s – $47.5 billion to Solana’s $6 billion.

    Over the last three months, Ethereum’s deposits grew a bit, hitting 19.8 million ETH as of Nov. 5. During the same time, the total value locked (TVL) on Solana jumped by 38%, hitting 38.1 million SOL. The reason for this could largely be that Ethereum’s liquid staking sector is larger and more developed, while Solana has been gaining traction through projects such as Jito, Marinade, and Sanctum.

    People who own SOL and stake it natively enjoy a 6.5% return thanks to network validation participation, while Ethereum and BNB Chain participation rates stand at 28.6% and 22.4% respectively. This means a lot more currency availability for instant sale on these networks.

    Moreover, SOL’s inflation rate has gone down from 5.7% to 5.4% over the past three months as per StakingRewards data. This, in simple terms, translates to better returns for those making the network validation process happen on Solana, answering criticism regarding SOL’s inflation rate.

    While Solana’s on-chain data looks promising compared to Ethereum and BNB Chain, whether that implies a bullish market sentiment is debatable. An analysis of SOL’s ongoing futures market is important to understand how traders are positioned. Bullish trends typically see positive funding rates which signal the use of leverage by buyers.

    Even when SOL’s price was $155 on Nov. 4, funding rates remained positive, just about. This suggests that traders are at the very least neutral, if not slightly leaning towards the bullish side, allowing room for leverage buying which is crucial for a continued push towards the $200 mark.

    However, it’s important to consider the potential effects of the US presidential election results and the upcoming remarks from Federal Reserve Chair Jerome Powell after the decision on the interest rate on Nov. 7.

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