Why is Solana (SOL) price up today?

YEREVAN (CoinChapter.com) – Solana (SOL) price jumped 5% to $72 on Dec 8, but why is Solana price up today? What propelled SOL to a new 2023 high? Here is a breakdown of the reasons behind the uptrend and the possible price targets for the altcoin.

Why Is Solana Up Today?

Solana price is dependent on a flurry of factors, including the overall sentiment on the crypto market. Thus, Bitcoin (BTC)‘s rally above $40,000 cannot be underestimated, as it took most altcoins along for the ride. As a result, the total crypto market cap hit $1.57 trillion on Dec 8, the highest reading since the Terra-induced price avalanche in May 2022.

Additionally, the crypto market as a whole saw significant fund inflow from institutional investors in the previous month. Bitcoin inflows led the pack, for the 10th consecutive week. However, SOL inflows were also considerable, partially answering the question of why is Solana up today.

Moreover, according to the latest CoinShares report, in the week ending Dec 3, Solana fund influx equaled $4.3 million, successfully negating previous outflows and bringing the year-to-date investments to $143 million.

SOL Trading Volumes At Record High

Notably, Solana inflows took a respectable third place after Bitcoin and Ethereum (ETH). Thus, it is important to take a look at the DeFi platform’s ecosystem closely and see what attracted the investors.

According to on-chain tracker DeFiLlama, Solana’s total value locked (TVL) also reached its 2023 high and stood at just below $828 million on Dec 8. Moreover, the Trading Volume on the platform jumped to its all-time high of $746 million on Dec 7.

All five leading protocols contributed the the rising TVL with double-digit gains, including Jito (JTO), a project that launched its Airdrop on Dec 7, gaining considerable traction.

The Solana-based NFT Market also boomed. For example, Tensor, a new entrant in layer-1’s NFT marketplace, has rapidly taken the top spot, surpassing Magic Eden with a monthly trading volume of over $1 million.

This accounts for an estimated 60% of the blockchain’s total NFT market share. Despite Magic Eden having more unique wallet users, Tensor’s traders are engaging in higher-volume trades. Tensor initially catered to professional traders but is now expanding its appeal to retail traders as well.