Solana's Price Tests Key Support Amid DeFi Competition

Solana's (SOL) price is currently testing an important technical zone as the competition in decentralized finance (DeFi) continues to intensify. The cryptocurrency recently defended the high-USD 90 region, but a sustained break below this area could expose lower support levels.

The total value locked (TVL) in Solana's DeFi ecosystem has remained relatively stable after expanding strongly during August. As of September 18, TVL stood at approximately USD 5.914 billion, according to DeFiLlama data. This indicates that liquidity remains broadly around the same range despite recent price volatility.

However, Solana faces growing competition from other networks such as Ethereum, BNB Chain, Base, Tron, and others. Stablecoin liquidity remains important, with Solana holding USD 16.46 billion in stablecoins during the week ending September 13. USDT accounted for USD 7.31 billion, while USDC stood at USD 2.54 billion.

Despite the competition, Solana's underlying network performance continues to improve. The blockchain recently sustained more than 5,000 user transactions per second for the first time, and has reduced target slot times to 300 milliseconds, with a goal of reaching 200 milliseconds next.