The Layer-1 (L1) blockchain network Solana experienced significant demand growth from users in April. This increase in activity is evident from key metrics, including a substantial rise in daily transactions on the network, fees, and revenues.
This caused an increase in demand for SOL, which raised its price by 16% over the last 30 days. As the network shows no signs of slowing down, SOL may continue its growth in the short term.
Activity on the Solana network is rapidly increasing, raising the price of SOL.
The increase in Solana user activity this month is evident in the rise in daily transactions. According to Artemis, the network processed over 99 million transactions since the beginning of April, representing a 12% increase compared to the previous month. As a result of this increase in user engagement, Solana network fees and the revenues generated from them have seen a significant boost. According to Artemis, transaction fees on the network rose by 35%, while the revenues generated from these fees increased by 26% over the same period. The surge in user activity on the Solana network has heightened the demand for its native token, SOL. This is due to the fact that with more users interacting with L1, the need for SOL for transaction execution and fee payments in the network grows.
This contributed to double-digit price growth, with SOL rising over 16% in the last month. The price increase reflects growing investor confidence in the network and highlights the positive correlation between user activity and token value.
Therefore, if user activity on Solana remains high, SOL may continue to be bullish in the new month.
Bullish pressure on SOL is increasing, but a decline to $120 is still possible.
On the daily chart, the Directional Movement Index (DMI) indicators for SOL confirm buyer pressure among spot market participants. At the time of publication, the positive directional index for SOL (+DI, blue line) is above the negative directional index (-DI, orange line).
The DMI indicator measures the strength of an asset's price trend. It consists of two lines: +DI, which represents upward price movement, and -DI, which indicates downward price movement.
As with SOL, when +DI is above -DI, the market is bullish, with upward price movement dominating market sentiment. If this continues, SOL may continue its rise and reach $171.88. However, if Solana user activity decreases, impacting the demand for SOL, the token price may lose recent gains, break the support level at $142.59, and fall to $120.81.
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