Solana’s massive comeback
Solana, a leading blockchain network, has had a rollercoaster ride in recent years. After peaking at $260.61 in 2021, the token plummeted following the FTX collapse in 2022, reaching below $10. By 2024, however, Solana rebounded, with its price hitting $168 by October, marking a significant recovery from its lows.
Solana’s 2024 developments: a surge in growth, adoption, and stability
2024 has been a breakout year for Solana. Its Total Value Locked (TVL), a key DeFi metric, has risen from $1.4 billion at the start of the year to $6.20 billion by October, a 342% increase. In contrast, Ethereum's TVL declined to $48 billion.
Solana DEX volume
Solana has also overtaken Ethereum in decentralized exchange (DEX) volume, commanding over 30% of the market, compared to Ethereum's 16%. Solana's fast blockchain processes thousands of transactions per second, making it more efficient for trading than Ethereum, which suffers from congestion and high fees.
Blockchain performance
Solana processed 476 million transactions in the last 30 days, with 95 million unique active wallets, showing a 40% increase. Ethereum, on the other hand, processed just 7 million transactions with 1.66 million active wallets. Despite this, Ethereum still dominates in terms of Dapp volume, handling $108 billion in the past month compared to Solana’s $4 billion.
Decoding the Solana Surge
A surprising factor behind Solana's rise is the growth in meme coins, which have boosted network activity and liquidity. Analysts suggest that Solana is becoming the platform of choice for high-risk, speculative trading due to its speed and scalability.
Where could Solana go from here?
Analysts predict that Solana could rise to $195-$202 if current bullish patterns hold. However, staying above the $171 level is crucial for further upward movement. While short-term prospects are promising, caution is advised due to the market's volatility.
