Solayer Invests $12M in Solana Restaking Upgrade

Solayer Raises $12 Million to Enhance Restaking on Solana

Solayer has successfully raised $12 million in funding, led by Polychain Capital, to enhance its integrated restaking network on the Solana blockchain. This project aims to address key challenges in Solana’s scalability and transaction inclusion by utilizing modern staking techniques and improving network bandwidth.

Diverse Investor Participation

The funding round saw participation from a variety of investors, including:

• Hack VC
• ABCDE
• Binance Labs

These funds will support Solayer’s efforts to facilitate Solana’s horizontal expansion, which focuses on decentralizing the network’s bandwidth. The goal is to create a more decentralized transaction settlement process that is less susceptible to censorship. This is particularly crucial given the record increase in users and transaction volume on the Solana blockchain over the past year. Solayer’s approach contrasts with the modularity found in other blockchain systems by offering a more comprehensive design framework.

Solayer: Enhancing Scalability and Liveness

Solayer’s improvements in scalability and liveness are designed to alleviate congestion and reduce rising fees that have accompanied the growth in Solana’s user base. To date, Solayer has introduced several significant features, including a restaking vault and MEV-boost, with plans to add more components in the coming months.

Meanwhile, Solana (SOL) has recently experienced a decline in value, surprising many in the market. The SOL token has retreated from levels above $155, mirroring declines seen in other major cryptocurrencies such as Bitcoin and Ethereum. It has been trading below $150, nearing the $140 support level.

Technical Analysis and Resistance Levels

A low was established at $140.53, with the price currently consolidating its losses. A minor uptrend correction has allowed it to rise slightly above the $142 and $143 levels. The price climbed above the 23.6% Fibonacci retracement level, calculated from the downward movement from the $161.95 swing high to the $140.53 low.

Currently, Solana is trading significantly below the $150 mark and the 100-hourly simple moving average. Resistance is forming near the $146 level as the price adjusts. A short-term declining channel is evident, with resistance around $145.50 on the hourly chart for the SOL/USD pair. The next notable resistance level appears to be around $148. If a breakout above the $148 and $150 resistance barriers occurs, it could signal a new upward trend, provided a successful closing follows. Another key resistance level is at $152, or the 50% Fibonacci retracement level of the decline from the $161.95 swing high to the $140.53 low. Further gains could drive the price toward the $162 mark.

Potential Downside Risks

If SOL fails to overcome the $146 resistance, it may trigger a new decline. On the downside, immediate support is available at $142, with major support at $140. If the price drops below the $140 level, it could fall further to $132. A close below $132 might lead to further declines toward the $125 support level in the near term.