Jamie Coutts, chief crypto analyst at Real Vision, suggests that a major competitor to Ethereum (ETH) might be on the brink of a significant breakout.
Coutts indicates that the number of active addresses on Solana (SOL) has surged by triple digits percentage-wise in the past three months, outpacing other smart contract platforms.
He believes that the recent price dip of SOL, coupled with the network’s positive metrics, puts it in a strong position for a major upward move.
“Solana: active addresses surged by 276%, while fees dropped by 11.3%. The price appears to be a coiled spring, ready to breakout.”
He also provides insights on other smart contract platforms (SCPs) during the same timeframe:
“On-chain activity update for key SCP networks:
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- Ethereum: fees seem to have reached a cycle low, soaring 77%, while price momentum is underwhelming at -21.9%.
- TON: active addresses increased by 208%, fees are up by 103%, but price growth (+26.1%) feels restrained due to the fallout involving Telegram’s CEO – likely an overreaction.
- SUI: fees soared by +236% and addresses grew by +74.9%. Increased monetary velocity suggests a healthy network expansion. (Aptos is also showing slight progress.)
- TRON: excelling in stablecoin transfers, with fees climbing 30.4% to $6.39 million/day across 2.1 million active addresses. Strong momentum, approaching all-time highs (ATHs).
- NEAR: Growth has decelerated with minor declines but still maintains the second position in active addresses (over 3 million).
On-chain metrics are based on a 14-day rolling average.”
At the time of writing, Solana is priced at $145.33, reflecting an increase of more than 4% in the past 24 hours.
Coutts also points out that payments giant Stripe has announced global support for USDC settlements on the Ethereum (ETH), Polygon (POL), and Solana blockchains.
He believes that advancements in crypto payments are bullish for layer-1 networks like Solana.
“One of the largest payment companies worldwide reenters the scene after a six-year absence. Visa, Mastercard, PayPal, and Stripe are positioning themselves in the crypto sphere. The critical question for investors is whether blockchain networks will see increased or decreased usage in the future. Apart from Bitcoin as a store of value, many other use cases – decentralized physical infrastructure networks (DePin), non-fungible tokens (NFTs), etc. – are still striving to achieve product-market fit (PMF).
“However, stablecoins and their utility for payments and decentralized finance (DeFi) are indisputable. Should other aspects falter, this alone may be sufficient to secure the network value of layer-1s (L1s) that have established initial network effects and those that are on the path to doing so. As always, the vital question is the appropriate position size.”
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