Originally published on: November 05, 2024
Solana’s native token SOL jumped by 5.3% to reach $186.78, signaling a potential push towards the coveted $200 mark as Bitcoin surged to $70,550. With on-chain data and derivatives market metrics pointing towards a continued rally in the short term, traders are eyeing SOL with optimistic projections.
Solana’s dominance in decentralized exchange (DEX) volumes underscores its growing user activity and transaction fees, essential for sustainable growth and wider adoption. Recent data reveals Solana’s superiority over Ethereum, with its $11.86 billion weekly DEX activity outperforming Ethereum’s layer-2 solutions.
Despite Ethereum’s larger network, Solana’s $20.5 million in fees over the past week, closing in on Ethereum’s $22.6 million, highlights its competitive edge. Moreover, Solana’s 38% increase in Total Value Locked (TVL) compared to Ethereum’s 4% growth indicates growing confidence in the network.
With a 6.5% yield on native staking and a high participation rate in network validation, SOL holders are reaping rewards. The decrease in inflation rate to 5.4% further boosts Solana’s appeal to investors, addressing concerns about inflation.
While on-chain metrics are favorable, sentiments in the futures market are equally crucial. Positive funding rates for SOL perpetual futures suggest a neutral to mildly bullish stance among traders, creating potential for upward momentum towards $200.
As the market awaits the outcome of the US presidential election and Federal Reserve announcements, the path to $200 for SOL remains promising. Stay updated on the latest market insights and investment opportunities by subscribing to our newsletter for exclusive content every Monday.
