Originally published on: October 29, 2024
Solana (SOL) has broken through the $180 barrier once again after struggling to reach this level for nearly three months. With a month-long gain of 16.3% to $183, SOL’s surge comes as Bitcoin (BTC) inches closer to its all-time high. But is there data specific to Solana that supports a move to even higher levels?
Recent data on Solana’s onchain and derivatives metrics suggests that the cryptocurrency may just be at the beginning of a bull run, with the potential for further gains towards $200 and beyond. The total value locked (TVL) in the Solana network has been steadily rising, reaching a two-year high as the amount secured in its smart contracts hits new levels.
On October 26, deposits on the Solana network hit 42.5 million SOL, the highest since September 2022. Some key contributors to this growth include Jupiter, Raydium, and Sanctum, which have seen significant increases in deposits over the past 30 days. Solana has now surpassed BNB Chain to become the second-largest network in terms of liquid TVL, showing strong potential for further growth.
Solana has also taken the lead in decentralized exchange (DEX) volumes, surpassing Ethereum in activity over the past seven days. With notable projects within the Solana ecosystem experiencing significant increases in volumes, there is a clear trend towards increased adoption and activity within the network.
While SOL futures lack excessive leverage, the current funding rate suggests that the recent rally to $182 is just the beginning of a larger bull cycle. With strong onchain metrics and healthy spot buying activity, Solana has room for potential gains towards $200 and beyond.
In an environment where memecoins are experiencing a surge in popularity, Solana’s role in this sector is also noteworthy. While some memecoins have seen significant gains in recent weeks, only a few are likely to maintain long-term value. With Solana leading the charge in DEX volumes and onchain growth, the cryptocurrency is well-positioned for further success in the market.
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