Solana price hits 2+ year high — Is a new SOL all-time high on the way?

Solana’s native token, SOL (SOL), rose by 35% in between Oct. 5 and Oct. 11, reaching its greatest level considering that December 2021 at $222. This motion has actually led traders to hypothesize whether the all-time high of $260 is within reach, particularly after Bitcoin (BTC) crossed $84,500, driven by stable institutional inflows and expected regulative clearness in the United States.

SOL has actually exceeded the wider altcoin market, which saw a 33% boost over the exact same six-day duration ending Oct. 11. Financiers’ optimism concerning SOL is partially sustained by the growth in Solana’s clever agreement activity, as evidenced by the overall worth locked (TVL).

The TVL on Solana intensified to $7.6 billion by Oct. 10, marking the greatest considering that December 2021. Secret decentralized applications (DApps) like Jito, Raydium, Wander, and Binance’s liquid staking considerably added to a 36% development in deposits.

Solana’s activity boost is not restricted to memecoin trading

There is some legitimate criticism concerning Solana’s heavy reliance on memecoins, consisting of Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT), all of which have actually gone beyond the $1.5 billion market capitalization limit. Decentralized token launch platforms like Pump.fun have actually been the primary chauffeurs behind the boost in Solana decentralized exchanges (DEX) volumes.

Weekly DEX volumes on Solana rose to $17.1 billion in the week ending Nov. 2, a figure not seen considering that March 2024, and representing a 26% market share, exceeding even the leading DApp-focused blockchain, Ethereum. Solana likewise handled to catch $88.2 million in month-to-month charges, which is essential for dealing with network security issues.

By contrast, the Ethereum network, with a TVL over 7 times greater than Solana, made $131.6 million in month-to-month charges. Likewise, Tron, another blockchain highlighting base layer scalability, gathered $49.1 million in charges over thirty days. These figures do not consist of wider environment earnings, that include noteworthy contributions like $100.2 million from Jito and $83 million from Raydium.

Examining platforms entirely by TVL and charges may be deceptive considering that not all DApps require high volumes to be considerable. Nevertheless, they are important for adoption and drawing in brand-new users, setting the phase for sustainable development and increased need for SOL build-up and usage.

For instance, Magic Eden, Solana’s leading non-fungible token (NFT) market, taped 77,160 active addresses over the previous thirty days, as reported by DappRadar. On the other hand, OpenSea, a similar service on the Ethereum network, saw 37,940 active addresses throughout the exact same timeframe.

This information offers strong proof of how the Solana network has actually drawn in users beyond the memecoin craze, recommending that SOL’s rate might see additional advantages. Nevertheless, to figure out if traders are exceedingly leveraging their positions, one ought to examine the SOL continuous futures.

Related: 80% of memecoins pumped after Binance listing in 2024

A favorable financing rate suggests that long positions (purchasers) are spending for utilize, which generally varies in between 0% and 2% monthly in neutral markets. The current rise to 5% on Nov. 10 recommended a short-term over-enthusiasm, however the most recent information from Nov. 11 reveals a neutral utilize expense of 1.8% month-to-month.

In regards to onchain and derivatives metrics, SOL seems on a course to accomplishing an all-time high, strengthened by increased network activity and no indications of extreme utilize.

This post is for basic details functions and is not planned to be and ought to not be taken as legal or financial investment guidance. The views, ideas, and viewpoints revealed here are the author’s alone and do not always show or represent the views and viewpoints of Cointelegraph.