Originally published on: November 27, 2024
Solana’s native token, SOL, has seen a remarkable recovery of 8% since hitting a low of $222 on Nov. 26. Despite this bounce back, some investors are still cautious following a sharp correction from its all-time high of $263.80 on Nov. 23. However, data from onchain and derivatives markets suggest that SOL could have significant room for growth.
Investor sentiment has been mixed, especially as SOL only saw a modest 1% increase between Nov. 20 and Nov. 27 while the overall altcoin market cap surged by 12%. Yet, Solana’s fundamentals continue to strengthen, establishing itself as the second-largest programmable blockchain by developer activity and user engagement. The network’s total value locked (TVL) rose by 48% in the 30 days leading up to Nov. 27.
In comparison to other networks, Solana has outperformed with metrics like the Jito staking solution, Jupiter decentralized exchange, and Raydium experiencing significant growth in total value locked. This surge reflects the rising demand for SOL fueled by its expanding DApp ecosystem.
While some may view SOL as a competitor to Ethereum, data suggests that both networks can thrive independently. Ethereum’s onchain activity has surged in the last 30 days, with Uniswap volumes seeing a considerable increase. On the other hand, Solana leads in memecoin launches and trading, showcasing its unique position in the market.
As SOL futures indicate a high premium for long positions, traders remain optimistic about further price appreciation. With Solana trading at a discount compared to Ethereum, there is ample opportunity for SOL to continue its upward trajectory towards $300. The future looks promising for SOL investors as Solana’s fundamentals and market data point towards a bullish trend.
