By Chris Hollingworth 
Solana, a popular cryptocurrency, has recently surged past the $200 mark driven by its strong on-chain growth. Despite this milestone, some concerns have emerged in the market regarding the cryptocurrency’s future performance.
One of the key factors contributing to Solana’s rise above $200 is its impressive on-chain growth. This growth is indicative of the network’s increasing adoption and usage, which has bolstered investor confidence in the cryptocurrency.
However, there are challenges that Solana faces that could potentially impact its near-term performance. Flat funding rates and a decline in decentralized exchange (DEX) market share have raised doubts among investors about the cryptocurrency’s ability to sustain its rally towards $250.
Flat funding rates suggest that there may be a lack of significant capital inflows into the Solana ecosystem, which could hinder further price appreciation. Additionally, the decreasing market share of Solana in DEX platforms indicates a potential shift in investor preferences towards other cryptocurrencies or blockchain networks.
It is important for investors to closely monitor these developments and consider the potential implications for Solana’s price trajectory. By staying informed about both the positive and negative aspects of the cryptocurrency’s market dynamics, investors can make well-informed decisions regarding their investment strategies.
