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

2 days ago

Solana's autochthonal token, SOL (SOL), surged by 35% betwixt Oct. 5 and Oct. 11, reaching its highest level since December 2021 astatine $222. This question has led traders to speculate whether the all-time precocious of $260 is wrong reach, particularly aft Bitcoin (BTC) crossed $84,500, driven by dependable organization inflows and anticipated regulatory clarity successful the United States.

SOL has outperformed the broader altcoin market, which saw a 33% summation implicit the aforesaid six-day play ending Oct. 11. Investors' optimism regarding SOL is partially fueled by the enlargement successful Solana's astute declaration activity, arsenic evidenced by the full worth locked (TVL).

The TVL connected Solana escalated to $7.6 cardinal by Oct. 10, marking the highest since December 2021. Key decentralized applications (DApps) similar Jito, Raydium, Drift, and Binance's liquid staking importantly contributed to a 36% maturation successful deposits.

Solana’s enactment summation is not constricted to memecoin trading

There is immoderate valid disapproval regarding Solana's dense dependence connected memecoins, including Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT), each of which person surpassed the $1.5 cardinal marketplace capitalization threshold. Decentralized token motorboat platforms similar Pump.fun person been the main drivers down the summation successful Solana decentralized exchanges (DEX) volumes.

Weekly DEX volumes connected Solana surged to $17.1 cardinal successful the week ending Nov. 2, a fig not seen since March 2024, and corresponding to a 26% marketplace share, surpassing adjacent the starring DApp-focused blockchain, Ethereum. Solana besides managed to seizure $88.2 cardinal successful monthly fees, which is captious for addressing web information concerns.

By comparison, the Ethereum network, with a TVL implicit 7 times higher than Solana, earned $131.6 cardinal successful monthly fees. Similarly, Tron, different blockchain emphasizing base furniture scalability, collected $49.1 cardinal successful fees implicit 30 days. These figures bash not see broader ecosystem revenues, which see notable contributions similar $100.2 cardinal from Jito and $83 cardinal from Raydium.

Evaluating platforms solely by TVL and fees mightiness beryllium misleading since not each DApps request precocious volumes to beryllium significant. However, they are important for adoption and attracting caller users, mounting the signifier for sustainable maturation and accrued request for SOL accumulation and utilization.

For example, Magic Eden, Solana's starring non-fungible token (NFT) marketplace, recorded 77,160 progressive addresses implicit the past 30 days, arsenic reported by DappRadar. In contrast, OpenSea, a comparable work connected the Ethereum network, saw 37,940 progressive addresses during the aforesaid timeframe.

This information provides coagulated grounds of however the Solana web has attracted users beyond the memecoin frenzy, suggesting that SOL's terms whitethorn spot further benefits. However, to find if traders are excessively leveraging their positions, 1 should analyse the SOL perpetual futures.

A affirmative backing complaint indicates that agelong positions (buyers) are paying for leverage, which typically fluctuates betwixt 0% and 2% per period successful neutral markets. The caller surge to 5% connected Nov. 10 suggested a impermanent over-enthusiasm, but the latest information from Nov. 11 shows a neutral leverage outgo of 1.8% monthly.

In presumption of onchain and derivatives metrics, SOL appears to beryllium connected a way to achieving an all-time high, bolstered by accrued web enactment and nary signs of excessive leverage.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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