Originally published on: November 11, 2024
Solana’s native token, SOL, made a remarkable 35% leap from November 5 to November 11, hitting a peak not seen since December 2021 at $222. With Bitcoin surging past $84,500 due to institutional interest and clarity in US regulations, traders are now wondering if SOL can reach its all-time high of $260.
Outperforming the overall altcoin market, SOL’s rise is attributed to the growth in Solana’s smart contract activity, evidenced by the increase in Total Value Locked (TVL). By November 10, Solana’s TVL had soared to $7.6 billion, the highest level since December 2021, with key DApps like Jito, Raydium, Drift, and Binance’s liquid staking driving a 36% spike in deposits.
Despite some concerns about Solana’s reliance on memecoins like Dogwifhat, Bonk, and Popcat, the network’s decentralized token launch platforms have boosted DEX volumes. In fact, Solana’s weekly DEX volumes hit $17.1 billion, surpassing Ethereum as the leading DApp-focused blockchain.
Moreover, Solana’s expansion is evident beyond the memecoin hype, with platforms like Magic Eden drawing significant user interest. This indicates a broader uptake of the Solana network, hinting at further potential for SOL’s price growth.
Analyzing the SOL perpetual futures data, a neutral leverage cost suggests traders are not overly leveraging their positions, paving the way for an impending all-time high.
With increased network activity and promising metrics, Solana seems poised for even greater heights. Stay informed on investment opportunities and refine your trading strategies by subscribing to the Markets Outlook newsletter for exclusive insights every Monday.