The surge in Solana’s price gained traction as its ecosystem and on-chain indicators continued to show robust performance.
The Solana (SOL) token climbed, testing a crucial resistance level at $180, marking its peak since July 31. It has risen by 60% from its lowest point on August 8, a time when many assets suffered due to the unwinding of the Japanese yen carry trade.
Solana has outshined Ethereum (ETH), its primary rival, which has only seen a 20% increase from its August lows.
This achievement is significantly attributed to Solana’s prominence in the meme coin market. Data from CoinGecko indicates that all Solana meme coins together boast a valuation exceeding $11.7 billion.
Dogwifhat, the leading meme coin within the Solana ecosystem, has a market capitalization of $2.5 billion. Additionally, both Bonk and Popcat possess market caps of over $1 billion, with Cat in a Dog’s World approaching that threshold.
Moreover, research from Blockworks shows that Solana’s Real Economic Value, which encompasses transaction fees and maximal extractable value, achieved an all-time high on October 25.
Further data reveals that the Solana ecosystem is flourishing. According to DeFi Llama, the total value locked (TVL) surged by 23% to $6.4 billion in the last 30 days. In contrast, the TVL for Ethereum and Tron has declined by 2.1% and 11.5%, respectively.
Solana has also emerged as the leading force in the decentralized exchange sector this month. Its DEX networks, notably Raydium, have processed tokens worth $16 billion, surpassing the combined total of Ethereum and Base. The monthly trading volume reached $41.7 billion, outpacing Ethereum’s $32 billion.
A similar pattern is evident in the derivatives market, where decentralized applications on Solana processed $4.6 billion worth of tokens in the past week.
Developers are increasingly drawn to Solana for its exceptional speed and low transaction fees. Data from Dune shows that nearly 200,000 users utilized Solana’s network in the last two weeks, significantly outperforming Ethereum’s 52,000.
Solana chart suggests potential for more gains
The weekly chart illustrates that the SOL token has experienced three consecutive weeks of increases, fueled by robust ecosystem development.
It has re-tested the upper boundary of the descending trendline that links the highest peaks since March.
Furthermore, Solana has created a bullish flag pattern, which typically signals further price appreciation. It is also maintaining above the 50-week moving average and has formed a rounded bottom, resembling a cup and handle pattern.
Consequently, the Solana token is poised for a bullish breakout, with an initial target projected at $210, approximately 20% above its current value.
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