How these Solana [SOL] collaborations led to a >$1B redemption- What next
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After a few days of poor performance Solana [SOL] rode back to a $1 billion deal volume. Considered one of the fastest growing ecosystems in the crypto space, SOL lost its grip on $1 billion in volume when the price fell from $33.44 to $30.62 on September 7.
On the same day, Solana confirmed its partnership with two separate Decentralized Finance (DeFi) platforms. According to the world’s largest DApp store, DappRadar, Soldex and AlfProtocol were the platforms that joined forces with Solana.
🔥 @Solana will prove a significant partnership in its DeFi space, as @Alfprotocol and @Soldexai, form a joint venture. This means that Solana DeFi users have more opportunities to improve their DeFi portfolio.
– DappRadar (@DappRadar) September 8, 2022
On the same page
While both protocols already existed in Solana, the latest collaboration was aimed at improving the DeFi experience of Solana’s faithful. As for Soldex, it could help users access user-friendly decentralized exchanges (DEXE). AlfProtocol, on the other hand, could help optimize cropping systems on the Solana network.
Also DappRadar considered that the partnership could play its part in increasing the number of Solana users. In addition to the increase in trading volume, the price of SOL increased. At press time, the cryptocurrency is trading at 35.10 – higher than before the drop.
Has adding users had an effect?
Not out of bounds
By Holy, Solana’s social dominance had increased after the price increase. The gauge, which was up just 2.48% on September 8, had risen to 5.26% at press time.
However, it was not the same with whale activity. The chain’s data platform showed that the supply percentage of whales above $5 million decreased. While it was 43.14 percent on September 8, it had fallen to 42.99 percent.
Based on the 4-hour chart, SOL appeared to be breaking through the September 1st support. Moreover, it had also broken out of recent resistance with clear signs of an uptrend. The Relative Strength Index (RSI) status also reflected intense buying activity above 70. This increase could have affected the previously mentioned volume.
However, a sustained RSI may lead to a reversal. At that point, it would represent an overbought level, and a reversal could reverse the price action to the upside or mark the beginning of a bust pattern.