As a researcher with years of experience in the ever-evolving world of cryptocurrencies, I’ve seen my fair share of market surges and dips. But the recent 13% jump in Solana (SOL) price within just seven days has certainly caught my attention.
Solana (SOL) price is up 13% over the last seven days to trade at $218 on Nov. 14.
Based on statistics from CryptoMoon Markets Pro and TradingView, Solana’s price surged from a minimum of $156 on November 5th, escalating up to 43% and hitting a two-year peak of $225 by November 12th. This significant increase in value has fueled enthusiasm among traders who believe the layer-1 token might further climb towards its record high of $260. The optimism is even more pronounced following Bitcoin’s (BTC) achievement of a new all-time high at $93,434 after breaching the $90,000 mark.
The upward momentum aligns with a broader cryptocurrency market rally and strong fundamentals within the Solana ecosystem.
Let’s look at the factors that could drive SOL toward its all-time highs.
SOL price backed by strong onchain metrics
The recent surge in Solana’s price might be due to growing investor trust, driven by the rising activity on Solana’s blockchain and shown by the escalating weekly trading volumes on decentralized exchanges that use Solana as their base.
As a crypto investor, I’ve been keeping a close eye on the surge in weekly DEX volumes on Solana. This past week, it reached an unprecedented high of $26.1 billion, marking a substantial 43% jump from the previous week’s $18.1 billion. What’s particularly interesting is that Solana now holds a 37% market share, outpacing even Ethereum, the dominant DApp-focused blockchain. During the same period, Ethereum recorded a DEX volume of $13 billion. It’s exciting to see such growth and competition in the crypto space!
The value tied up in Solana’s smart contracts has seen a rise too, indicating a surge in user activity and interest in the SOL token.
According to DefiLlama’s additional data, Solana’s Total Value Locked (TVL) surpassed $7.9 billion by November 13th, showing a staggering 460% increase compared to the start of the year. This is the highest TVL figure since December 2021. Notably, prominent decentralized applications such as Jito, Raydium, Marinade, and Binance’s liquid staking have played significant roles in boosting deposits on Solana.
This data recorded on the blockchain clearly demonstrates that the layer-1 network has gained a user base not just due to the meme coin trend, implying that Solana’s price could potentially rise even more.
Solana open interest hits all-time highs
Over the last seven days, the increase in Solana’s price has been associated with a surge in leveraged investments, culminating in a record-breaking peak in total open interests (OI) for Solana futures contracts on November 12.
Based on figures from CoinGlass, the value of Solana futures contracts opened reached an impressive $4.54 billion on November 12th, marking a significant 57% jump compared to the week before. This growth indicates a growing appetite for Solana derivative products, hinting at increasing institutional involvement but also implying potential risks.
Even though there’s a greater possibility of compulsory sell-offs if the price of SOL drops, the derivatives information suggests more room for upward movement.
Solana-based memecoins flash green
On November 14, Solana experienced a surge, which aligns with a price adjustment in the meme coins operating within its network. Many of these tokens have recorded significant day-to-day increases, as depicted in the graph below.
For example, Dogewhathat (WIF), currently the top memecoin on Solana based on market capitalization, has experienced a surge of more than 42% within the last 24 hours. Meanwhile, Bonk (BONK), Peanut the Squirrel (PNUT) and Popcat (POPCAT) have all seen gains – 20%, 42%, and 32% respectively – during this same period, as per data from CoinGecko.
Upon reviewing the data from the Dune Analytics dashboard, I noticed an intriguing pattern regarding Solana’s (SOL) price growth on November 14. Interestingly, this surge seems to have been preceded by a significant spike in the number of transactions executed on the network.
Over the span from November 9th through 13th, the number of daily transactions on the Solana blockchain observed an uptick, rising from 24,140 to 36,053.
A surge in memecoin actions and blockchain transactions on Solana shows a high level of network usage and expanding popularity. As more users engage with the platform, there’s an uptick in transactions and overall usage, which boosts the demand for SOL and potentially raises its price.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- OKB PREDICTION. OKB cryptocurrency
2024-11-14 19:02