Solana's total value locked has reached the previous ATH and moved slightly above it, according to DefiLIama. The TVL moves with a strong correlation to the price, which has reached a new high of $231 after a 16.7% rally.
Due to Solana being heavily utilized inside the network, a higher load due to the development of the DeFi and NFT industries acts positively on the price. In order to roll out a decentralized application on the Solana network or create an NFT collection, users have to purchase SOL token.
In the current market, decentralized applications are experiencing a new wave of popularity, which once again attracts more investors into Solana and creates additional buying power.
A variety of use cases for Solana create strong buying power on the market whenever crypto receives attention from investors. Solana received an initial boost in popularity when the NFT industry skyrocketed. Due to scalability issues on the Ethereum network, some users had to pay thousands of dollars to move one transaction through.
With a more convenient fee and transaction processing mechanisms, Solana users are able to make cheap transactions even in periods of high network load.
Acсording to TradingView, the previous ATH for Solana was reached on Oct. 25, when the coin's price reached $209. The old price record has been beaten in only eight days, with the asset now trading at $233.