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Why Solana’s [SOL] Recent Gains Might Be Undercut by This Metric’s Findings

TK Ventures and CoinWire’s data revealed that Solana [SOL] is now the most overvalued blockchain. This was determined using the market capitalization/TVL metric. When a network’s market cap to TVL ratio is above 1.0, it means that the network is overvalued, which can result in a price correction. As Solana’s MKC/TVL value was 17.5, the probability of increased selling pressure can be considered to be high. 

According to the MKC/TVL ratio, @solana seems to be overvalued compared to other blockchains.

However, Solana’s recent price action tells us a different story. According to CoinMarketCap, SOL registered daily gains of over 6%. At the time of writing, it was trading at $25.55 with a market capitalization of more than $9.4 billion. 

Solana Solana $242.57
+0.28%
Solana
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