As a researcher with a background in blockchain and cryptocurrency, I must say that the recent surge of Solana’s native token SOL is nothing short of remarkable. Having closely followed the crypto market since its inception, I can confidently say that this bullish momentum is reminiscent of the 2017-2018 boom, albeit on a much larger scale.
During the span from November 5th to November 22nd, Solana’s native token, SOL (SOL), experienced a significant increase of approximately 61.5%, peaking at an all-time high of $263. This upward trend coincided with broader gains in the altcoin market, which saw a rise of around 58%. As Bitcoin (BTC) approached the $100,000 mark, it almost reached this milestone.
The strong upward trend in the markets is largely due to Donald Trump’s victory in the recent 2024 US Presidential Election and a resurgence of interest in the Solana network. This revival has caused several key metrics on the Solana blockchain to hit all-time highs, most recently with the monthly volumes traded on decentralized exchanges.
Solana DEX volume surpasses $100 billion
On several occasions, Solana’s Layer-1 blockchain has set new highs for Decentralized Exchange (DEX) trading volume, as indicated by statistics from DefiLlama.
On the 25th of November, the trading volume on decentralized exchanges associated with Solana surpassed the $100 billion mark. As illustrated in the subsequent graph, the network has accumulated a total DEX trade volume of approximately $109.8 billion throughout the month of November.
The daily trading volume here is almost double the typical monthly decentralized exchange (DEX) volume on the Ethereum mainnet, which is approximately $55 billion. This represents an impressive growth of over 109%, compared to the trading volume in October that stood at around $52.5 billion.
On November 18 alone, the daily transaction value on the DEX platform soared to an unprecedented $7.14 billion. Furthermore, the total trading volume for the week ending November 17 marked a new all-time high of $41.6 billion in decentralized exchange transactions.
In March 2024, the trading volume of Solana on decentralized exchanges reached an all-time monthly high of $59.8 billion. This impressive spike was primarily driven by increased network activity and the memecoin craze that began in Q3 of 2023.
To put it simply, there was an over 800% increase in the value of SOL from October 2023 to April 2024, which was particularly significant.
Strong onchain metrics support SOL’s upside
It’s thought that analysts link SOL’s recent price increases and high DEX trading volumes to a rise in meme coins. The introduction of platforms such as Pump.fun and Raydium DEX, combined with the network’s low transaction costs and user-friendly interface, have played a major role in fueling the meme coin craze within the Solana community.
In November, the monthly revenues for Pump.fun and Raydium reached all-time peaks, amounting to $71.5 million and $182 million as per DefiLlama’s statistics.
Furthermore, I’ve noticed that the number of active addresses on Solana has surged to an all-time high of close to 25 million this month, as per data from Glassnode. This growth suggests increased user engagement and activity on the network.
According to crypto analyst Aylo, Solana currently stands as the “leading blockchain according to various measurements, handling the highest volume of decentralized exchange transactions.
At present, SOL accounts for roughly “29.5% of Ethereum’s total market value” and this proportion is still adjusting, according to the analyst’s statement.
SOL price technicals point upward
Looking at the technical aspects, Solana’s price showed robustness when it surpassed a rounded bottom chart structure on the weekly graph.
In simpler terms, the bulls aim to drive the price upwards towards their projected level of $300 on the current chart, which is approximately a 19% increase from its current value.
In simpler terms, the Relative Strength Index (RSI) remains above 70, which indicates that the current market trends are leaning towards further growth.
Instead, when we consider the RSI at age 70, it indicates a somewhat extended state that might lead to a reduction, potentially aiming for the neckline of the rounded-bottom pattern priced at $200, which could signal a possible correction.
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2024-11-25 16:31