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Solana (SOL) has surged to grow to be one in all the most liquid altcoins on the main crypto trade Coinbase, in line with current findings by market intelligence agency Kaiko. The token boasts over $3 million in liquidity, overshadowing distinguished altcoins like DOGE, XRP, and Matic. Despite the current 6% drop in Solana price amid market-wide pessimism, SOL’s strong fundamentals and introduction of a tokenized model of Bitcoin on the Solana community sign promising occasions forward.

📈 $SOL has surged to grow to be on of the most liquid altcoins on Coinbase pic.twitter.com/0vGJ1hEiY8

— Kaiko (@KaikoInformation) August 16, 2023

Surpassing Competitors in Liquidity

Liquidity refers to the ease with which an asset may be transformed into prepared money with out affecting its market value. The extra liquid an asset is, the extra effectively it may be remodeled into money. 

SOL’s superior liquidity on Coinbase makes it a pretty funding choice, as it may well simply be purchased or bought with out inflicting vital value fluctuations. With over $3 million in liquidity, SOL has surpassed DOGE, which has simply above $2 million, and XRP and Matic, which every have simply over $1 million.

Altcoin liquidity chart on Coinbase, Source: Kaiko

Despite its liquidity benefit, Solana has not been resistant to the broader market’s current downturn. The Solana value has declined by 6% to $23.39, ensuing from hypothesis that the SEC will delay its selections relating to Bitcoin ETF functions till 2024. Over the previous week, SOL has misplaced 5%, down 15% in the previous month. However, regardless of this short-term setback, SOL stays basically robust.

A Glimpse of Optimism for Solana

There are loads of causes for optimism relating to Solana’s future. A serious spotlight is the current launch of a tokenized model of Bitcoin, referred to as tBTC, on Solana’s community. Like Wrapped Bitcoin (WBTC) on Ethereum, tBTC will enable BTC holders to make the most of their Bitcoin worth throughout numerous DeFi platforms and functions, growing utilization for Solana.

Solana has been steadily recovering this 12 months after a difficult 2022 marked by community outages. The community now boasts a constant 100% uptime, and the introduction of recent launches and use circumstances, like tBTC, is anticipated additional to assist Solana’s constant restoration all through the 12 months.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency house for two years now. Previously he co-founded Govt. of India supported startup InThinks and is presently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has revealed greater than 100 articles on cryptocurrency and blockchain and has assisted a variety of ICO’s of their success. He has co-designed blockchain improvement industrial coaching and has hosted many interviews in previous. Follow him on Twitter at @sharmasunil8114 and attain out to him at sunil (at) coingape.com

The offered content material could embody the private opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any accountability to your private monetary loss.