Originally published on: November 11, 2024
Solana’s native token, SOL, experienced a remarkable 35% surge between Nov. 5 and Nov. 11, reaching its highest level since December 2021 at $221.59. With this significant increase, traders are now speculating whether the all-time high of $260 is within reach, especially after Bitcoin surpassed $84,500. This surge is driven by institutional inflows and anticipated regulatory clarity in the United States.
Outperforming the broader altcoin market, SOL has captured the attention of investors due to the expansion in Solana’s smart contract activity, as reflected in the total value locked (TVL) on the network.
By Nov. 10, the TVL on Solana had surged to $7.6 billion, marking its highest level since December 2021. The growth in deposits can be attributed to key decentralized applications (DApps) such as Jito, Raydium, Drift, and Binance’s liquid staking.
Despite some criticism of Solana’s reliance on memecoins like Dogwifhat (WIF) and Bonk (BONK), these assets have surpassed the $1.5 billion market capitalization mark. Decentralized token launch platforms like Pump.fun have been driving the increase in Solana’s decentralized exchanges (DEX) volumes.
Solana’s weekly DEX volumes hit $17.1 billion in the week ending Nov. 2, the highest figure since March 2024, giving Solana a 26% market share, surpassing even Ethereum. The network’s ability to capture $88.2 million in monthly fees underscores its focus on network security.
Compared to Ethereum, Solana, with its TVL significantly lower, has been able to generate $131.6 million in monthly fees, demonstrating its potential for growth and adoption. DApps like Jito and Raydium have made notable contributions to this revenue.
While measuring platforms based on TVL and fees may not provide a complete picture, these metrics are crucial for attracting new users and fostering sustainable growth. The growing popularity of Solana’s NFT marketplace, Magic Eden, suggests that the network is expanding beyond memecoins, which could further drive SOL’s price.
With positive trends in on-chain and derivatives metrics, Solana appears poised to achieve an all-time high, supported by increased network activity and prudent leverage strategies. If you’re looking for investment opportunities in the crypto market, it might be time to keep a close eye on SOL.
