Solana (SOL) has seen an impressive rally this week, jumping over 25% to touch the $200 mark. This price surge aligns with broader crypto market gains following the U.S. election, which signaled a pro-crypto administration. Solana’s growth also comes alongside key ecosystem developments, including Coinbase’s launch of cbBTC on Solana, the debut of Eclipse, and a memecoin boom led by Pump.fun.

• SOL’s price jumped 25% this week, fueled by demand and strong on-chain metrics.The $200 level is in focus, with potential to breach higher resistance at $210.

• Coinbase launched wrapped Bitcoin (cbBTC) on Solana, enhancing DeFi capabilities.

• Eclipse, the first Ethereum layer-2 network based on Solana, has gone live.

• Open interest for SOL futures hit record highs, indicating rising institutional interest.

• Staking deposits surged, reducing SOL’s tradeable supply and strengthening network stability.

SOL OI-Weighted Fund Rate | Source: CoinGlass 

Solana’s open interest in futures markets has also hit record highs, reflecting strong institutional demand. Futures open interest reached 21.1 million SOL this week, a new high in nominal terms with $4 billion in value. This increase in leverage signals potential for volatility but also highlights SOL’s popularity among institutional investors.

The current funding rate for SOL futures sits at a balanced 0.017%, showing a moderate bullish sentiment without excessive leverage. Such stability could allow SOL’s price to continue its upward trajectory if demand remains strong and liquidations are kept in check.

Read more: How To Arbitrage From Funding Fees Futures/Spot Hedging

Solana staking performance | Source: Staking Rewards 

Staking activity among SOL holders has surged, adding an additional $1.3 billion worth of SOL to staking contracts over the past week. This move reduces the tradeable supply of SOL on exchanges, a trend that tends to support price increases during periods of high demand. Over 397 million SOL are now staked, showing that key stakeholders remain committed to long-term growth and network security.

Higher staking deposits also reinforce Solana’s blockchain, an important factor as the network has experienced stability issues in the past. With additional staked assets, Solana is better equipped to handle increased transaction volumes, which could be crucial in sustaining its growth momentum.

Read more: How to Stake Solana with Phantom Wallet

Pump.fun daily volume | Source: Dune Analytics 

The rise of Solana-based memecoins has become a significant driver of the SOL token’s recent performance, with platforms like Pump.fun leading the charge. Known as a launchpad for meme tokens, Pump.fun has issued over 3 million tokens, with cumulative token issuance growing by 36% since October. This influx of memecoins has bolstered activity on decentralized exchanges (DEXs) within the Solana ecosystem, including Raydium, which saw over $30 billion in trading volume in October alone.

Goatseus Maximus (GOAT), the leading token on Pump.fun, now boasts a market cap of $835 million. Other top memecoins like Fwog (FWOG) and Moo Deng (MOODENG) also contribute to Solana’s DEX volume, drawing users and investors. Although Pump.fun recently dropped out of the top 10 DeFi protocols by fees, it remains influential within the memecoin sector, driving high transaction fees and contributing to Solana’s on-chain metrics.

In a significant move for Solana DeFi, Coinbase introduced wrapped Bitcoin (cbBTC) on the Solana blockchain. This new asset allows Solana users to access Bitcoin’s liquidity within Solana’s rapidly growing DeFi ecosystem. With cbBTC, Solana DeFi protocols can now support Bitcoin-backed transactions, lending, and other financial services, a critical function that previously required Ethereum bridging or other indirect methods.

This addition also addresses a gap left by the collapse of soBTC, Solana’s previous wrapped Bitcoin token that failed during the FTX exchange crash. As Coinbase’s first native token on Solana, cbBTC provides a high-liquidity option for Bitcoin holders, already circulating with an initial $10 million supply. This development could further enhance SOL’s DeFi ecosystem, offering users more options and aligning with Solana’s broader strategy to expand on-chain utility.

Another key event in Solana’s ecosystem is the launch of Eclipse, the first Ethereum layer-2 network based on Solana. Eclipse combines the strengths of both chains—Ethereum’s liquidity and decentralization with Solana’s speed and low transaction costs. By leveraging the Solana Virtual Machine (SVM), Eclipse allows users to transact on Ethereum more affordably while benefiting from Solana’s transaction speed.

Eclipse’s launch marks a unique integration that bridges two of the largest blockchain ecosystems, unlocking opportunities for decentralized applications across DeFi, consumer apps, and gaming. The project’s successful $65 million in funding underscores industry interest in this hybrid model, which could play a pivotal role in future blockchain interoperability.

Read more: Solana vs. Ethereum: Which Is Better in 2024? 

SOL/USDT price chart | Source: KuCoin

With SOL currently trading around $196, the $200 mark is within reach. This psychological level could attract more buying interest if breached, potentially setting up the token to test resistance at $210. A breakthrough here could pave the way for even higher gains, with targets around $225.

However, if SOL encounters resistance, support is anticipated at its Volume Weighted Average Price (VWAP) of $189. A dip below could see SOL retreat to $171, but the recent influx of staking activity and strong open interest indicate that dips may be bought up quickly.

The convergence of key developments in Solana’s ecosystem, from cbBTC’s launch to Eclipse’s debut and the booming memecoin market, indicates sustained growth potential. As Solana’s speed, low transaction costs, and expanding DeFi options attract more users, SOL’s bullish trajectory could continue, especially if market conditions remain favorable and network stability is maintained.

With the $200 level within reach, Solana is positioned to capitalize on its recent gains, and the strong demand from institutional investors and the memecoin sector provides a robust foundation for future price increases. As SOL continues to integrate DeFi and memecoins, it stands to reinforce its role as a leading blockchain in the crypto ecosystem.

Read more: Trump’s Win Sets BTC on Course for $100K, Solana Nears $200 and More: Nov 8