TRUMP Memecoin Propels SOL Price, Surpasses Ethereum; Solana's TVL Soars to $12B
The launch of Donald Trump's official memecoin on the Solana blockchain has had a remarkable impact. It has not only driven Solana's Total Value Locked (TVL) and the price of its native token, SOL, to new all - time highs but has also seemingly done so at the expense of its rival, Ethereum.
On January 19, the SOL price reached a new all - time high of 0.00936 against Ether (ETH). At that time, SOL was valued at $254.32 and ETH at $3,341.12. Since then, it has retraced to the current level of 0.0769.
The impressive performance of SOL in recent days can be directly linked to the memecoin associated with the incoming US President Donald Trump, named Official TRUMP ($TRUMP). This memecoin has significantly increased interest in Solana, resulting in a substantial surge in both SOL's price and trading volume.
Solana TVL hits a new-time high of $12B
Furthermore, the Solana network's total value locked (TVL) crossed the $10 billion mark for the first time since November 2022 and has now reached a new all - time high of over $12 billion.
The excitement around the Official TRUMP memecoin on Solana caused the SOL/USD pair to skyrocket to all - time highs on January 19. This was accompanied by a significant spike in the total value locked (TVL).
According to DefiLlama data, on January 20, Solana network DApps collectively held over $12 billion in SOL. This represents a nearly 50% increase over the last seven days.
The activity on Solana is currently extraordinary, with more and more people discovering opportunities that extend far beyond just memecoins. It provides an ideal environment for tokens like $JUP, $JTO, $CLOUD, $KMNO to thrive, as well as for $MET, $VAULT, etc.
Solana's TVL has been steadily rising. It crossed the $10 billion mark on January 18, reaching levels last seen in November 2022, just before the collapse of FTX. That event led to a 71% drop in the SOL price to $7 in December 2022. Since then, the SOL price has increased by 3000%, and the TVL has jumped by 5,800% over the same period.
The 46% surge in Solana's TVL over the last 30 days is significantly higher compared to other top layer - 1 blockchains such as Ethereum, Tron, and the BNB Smart Chain (BSC). Notably, Ethereum's TVL has actually decreased by 1.87% in the past month.
During the memecoin frenzy between January 17 and January 19, the number of daily transactions on the Solana blockchain increased from 45,881 to 57,084. This indicates an overall resurgence in network activity.
Several analysts believe that SOL's price still has room for further growth in January. This is especially true considering that Trump's administration may create a strategic Bitcoin reserve and make other crypto - friendly regulatory moves in the coming days. Meanwhile, Polymarket gives the odds of SOL price hitting the $300 mark by January 31 at 40% - 50%.
However, not all are bullish. Pseudonymous crypto analyst REX stated that “$300 for SOL could totally be the cycle top,” arguing that it is “hard to see any catalyst bigger than TRUMP” to push SOL's price above that level. On the other hand, analyst and trader Greeny believes SOL's price is going “way higher” and has set medium - term targets at $370 and $425, with a long - term target of $685.
From a technical perspective, the SOL price chart shows a bull flag pattern on the four - hour timeframe. Bull flags typically resolve after the price breaks above the upper trendline and can rise by as much as the height of the previous uptrend. This puts the upper target for the SOL price at $360, a 40% increase from current levels. Additionally, the daily relative strength index (RSI) is at 58, which is positive, indicating that there is still room for upside before reaching the “oversold” threshold of 70.