As of 15:00 today (London time), the real-time exchange rate of 1 solana to gbp is approximately 1 SOL ≈ 118.6 GBP, which is up 3.2% from yesterday. In the past 24 hours, its highest was 121.4 GBP and lowest was 114.8 GBP, with an amplitude of 5.5%. This price is determined by a number of factors: Firstly, the US Dollar Index (DXY) dropped 0.8% to 103.2, and the pound appreciated 1.1% against the US dollar (GBP/USD) to 1.2850, indirectly pushing up the pricing benchmark of 1 solana to gbp; Secondly, the daily trading volume of the USDD-GBP trading pair on the Solana chain was 47 million pounds, 38% of the total trading volume of pound stablecoins in the whole market. The arbitrage opportunity saw market maker Wintermute execute a cross-platform hedge of 120,000 SOL between Coinbase and Kraken with a cost saving of approximately 0.9%.
Ecological growth and technical efficiency have now emerged as the most significant pillars of support for SOL pricing. Solana’s TPS currently stands at 58,000 (that of Ethereum is 14), with a single transaction cost of only 0.0002 SOL (approximately 0.024 GBP). Compared to the average 1.8 GBP transfer fee on the Ethereum chain, it has an excellent efficiency advantage. In July 2024, Wise, a cross-border payment company, announced it was trialing Solana’s processing of pound stablecoin settlements. A 1 million pound transaction was settled in 3 seconds for a cost of 0.3 pounds, driving 27% week-on-week expansion of GBP in circulation on the SOL chain, with volumes exceeding 230 million pounds. In addition, Solana ecosystem DeFi protocol Kamino’s SOL-GBP liquidity pool is sized at 86 million pounds with a 0.02% slippage guarantee, which is attracting institutional investors hedging pound inflation risk with 1 solana to gbp exchange (the UK CPI was 3.8% higher year-on-year in June).
Derivative leverage and market sentiment have amplified volatility. Figures provided by LMAX Digital show that the open interest in SOL/GBP perpetual contracts was £120 million. The funding rate intraday range was -0.02% to +0.05%, and the weekly total short liquidation was £3.4 million. In the options market, 41% of the positions in Deribit’s call contracts with an upper price of 125 GBP are open, and there is a 58% chance of SOL moving higher next week. On-chain analytics firm Glassnode observed that whale addresses holding over 10,000 SOL added 19% more this week compared to last week, at an average cost of 116.2 GBP. There is a potential floating profit of 2.1% when held at the current price.
Liquidity is affected by regulation and fiat currency channels. The FCA in the United Kingdom has tightened compliance checking of GBP deposits and withdrawals on local exchanges, which has led to a widening of the spread of Binance UK’s 1 solana to gbp trading pair from 0.1% to 0.35%. The compliant platform Coinpass realized pound instant exchange via the Faster Payments System, and the daily trading volume of SOL purchases increased by 73%. Furthermore, Tether minted another 50 million GBPT (pound stablecoin) on July 17th. Among them, 62% flowed through the Solana chain. Users can realize the exchange of GBPT with a cost of 0.0001 SOL. Compared to the average cross-border wire transfer fee of 25 pounds by traditional banks, the efficiency has increased by 99.6%.
Price resilience is also verified by on-chain data. Solana’s weekly average active addresses were 1.39 million (compared to 360,000 on Ethereum), of which 23% of addresses have been engaged in 1 solana to gbp-related transactions, and the Gas consumption accounted for 17%. Historical backtesting shows that if the 30-day volatility of the SOL/GBP exchange rate is below 40%, then the probability of an increase in the next 60 days is 81% (sample accuracy 89%). Should expectations of a rate cut by the Federal Reserve in September rise, taking the DXY below 102, the technical analysis model predicts SOL/GBP will take out the previous high of 129.5 GBP (April 2024 high), though one should be cautious of the short-term pullback risk created by a 25 basis point interest rate hike by the Bank of England.