Originally published on: November 05, 2024
Solana’s native token SOL kicked off the day with a 5.3% surge, trading above $167 and following Bitcoin’s election day rally to $70,550. Many traders are now setting their sights on the coveted $200 mark for SOL.
Onchain data and derivatives market metrics are painting a positive picture for SOL, hinting at a potential continuation of its rally in the short term.
Solana’s dominance in decentralized exchange (DEX) volumes underscores its growing user activity and transaction fees. Recent data even shows Solana outperforming Ethereum, with its layer-2 solutions falling short of Solana’s impressive $11.86 billion in weekly DEX activity.
In terms of fees, Solana is closing the gap with Ethereum, generating $20.5 million in the last seven days. This progress is particularly noteworthy considering Ethereum holds almost eight times more in deposits than Solana.
Solana’s staking ecosystem is also thriving, with SOL holders enjoying a 6.5% yield on native staking. The network’s staking ratio surpasses that of Ethereum and BNB Chain, offering a higher liquid supply available for immediate sale.
Despite its strong onchain metrics, Solana’s market sentiment is still up for debate. Positive funding rates in the SOL perpetual futures markets suggest a mildly bullish sentiment among traders, potentially paving the way for a push toward the $200 target.
As traders keep a close eye on SOL’s price movements, external factors such as the US presidential election results and Federal Reserve Chair Jerome Powell’s upcoming comments post-interest rate decision could also influence Solana’s trajectory in the days to come.
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