The Layer 1 (L1) blockchain Solana (SOL) has experienced a significant increase in user engagement over the last month. Daily active addresses and transaction volumes on the chain have seen impressive double-digit growth in this 30-day period.
This surge in network activity could be a key factor driving SOL’s price above the $200 threshold for the first time since April. This analysis explores the elements that may contribute to this outcome.
Growing Number of Solana Users
In the last 30 days, the demand for the Solana network has surged, as indicated by the rise in daily active addresses. Data from Artemis reveals that 7 million unique addresses have engaged in at least one transaction on Solana during this timeframe, showcasing an impressive 70% increase.
This uptick in active addresses has led to a corresponding rise in daily transaction volume on the network. Throughout the same 30-day stretch, Solana has successfully processed 44 million transactions, signifying a 24% increase in daily transaction activity on the L1.
Read more: 13 Best Solana (SOL) Wallets To Consider in October 2024
Importantly, the influx of users has contributed to the growth of Solana’s decentralized finance (DeFi) sector. In the past week, Solana has outperformed Ethereum and other significant networks like Base, Arbitrum, and Polygon regarding daily decentralized exchange (DEX) volume. Solana’s DEX volume reached over $13 billion during this period, outpacing Ethereum’s $8 billion.
Furthermore, Solana’s total value locked (TVL) is now at $6.22 billion, the highest level since January 2022.
SOL Price Forecast: Key is Elevated Network Usage
As user engagement with a blockchain network rises, the value of its native asset (SOL in this context) tends to increase. Higher usage signals an uptick in transactions, often leading to greater demand for the network’s token to cover transaction fees, which propels the asset’s price upward.
If Solana maintains its heightened network activity, resulting in growing demand for SOL, the current price of $166.15 could surpass the resistance level of $172.53.
A successful breakthrough of this resistance level could pave the way for the altcoin to reach $194.12. If buying impetus persists, Solana might even regain $210.18, a level it last approached in March.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
Conversely, if the activity levels on Solana decline and SOL demand diminishes, the price may test the support level at $148.15. If this level fails to hold, the price could drop further to $133.76, jeopardizing the bullish outlook.
Disclaimer
In compliance with the Trust Project guidelines, this price analysis article serves informational purposes only and should not be interpreted as financial or investment advice. BeInCrypto is dedicated to providing accurate, impartial reporting; however, market conditions can change without notice. Always perform your own research and consult with a financial professional prior to making any financial decisions. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
