In a move that’s expected to boost the Solana ecosystem, Binance, the world’s largest cryptocurrency exchange, has announced plans to launch its Solana staking service by late September. The new service will enable users to stake their SOL tokens and earn rewards in the form of Binance Staked SOL (BNSOL), a liquid staking token.
According to Vishal Sacheendran, Head of Regional Markets at Binance, the staking service is designed to provide a seamless and flexible way for users to earn rewards while maintaining full control over their staked assets. “As one of the first crypto exchanges to offer SOL liquid staking, Binance is offering a seamless and versatile way to earn rewards while allowing users to preserve liquidity, enjoy continuous reward accumulation, and seamlessly participate in both the Binance platform and the broader DeFi ecosystem,” he explained.
Solana Staking on the Rise
The Solana network has been experiencing significant growth in staking activity, with approximately 65% of the total SOL supply, or around 383.5 million tokens, currently staked, according to Solana Beach. Additionally, Staking Rewards data shows that nearly 10 million staked SOL tokens were added in late August. This trend is expected to continue as Binance and other exchanges launch their liquid staking services.
SOL Price Reaction
Interestingly, the SOL price did not react significantly to the announcement last week. However, a notable price response was observed on Wednesday, September 4, during the Asian trading session, as SOL rebounded strongly against Bitcoin (BTC) and Ethereum (ETH) pairs. SOL was also among the top-performing tokens during the mid-week recovery, with a significant surge in trading volumes.
Market Sentiment
Despite the positive news, the overall crypto market remains gripped by bearish sentiment, and the update may not be enough to trigger a sustainable rally if BTC continues to post losses. On the price chart, SOL is currently struggling to hold onto the $128 support level after a rejection at $160. A break below $110 cannot be ruled out if sellers breach the support.
What’s Next for SOL?
The launch of Binance’s Solana staking service is expected to increase demand for SOL tokens, potentially driving up the price. However, the overall market sentiment and BTC’s performance will likely play a significant role in determining the direction of SOL’s price. If the crypto market continues to decline, SOL may struggle to gain traction, but if the market turns bullish, SOL could be poised for a significant rally.
Disclaimer
Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.
