Solana (SOL) Price Closely Follows Bitcoin’s Bullish Breakout Catalyzed by Rising On-chain Activity

On Oct 28, 2024 at 2:50 pm UTC by · 3 mins read

The Solana network has significantly outshined Ethereum in its Web3 on-chain activity in the recent past fueled by its thriving memecoin ecosystem.

Amid the anticipated crypto bullish breakout as Bitcoin BTC $83 296 24h volatility: 0.6% Market cap: $1.65 T Vol. 24h: $29.44 B signals a potential rally in the near term, Solana SOL $125.7 24h volatility: 0.6% Market cap: $64.44 B Vol. 24h: $3.60 B has led the top-tier altcoins in notable gains. The large-cap altcoin, with a fully diluted valuation of about $104 billion and a daily average traded volume of over $3.6 billion, has surged over 15 percent in the past two weeks to trade around $177 on Monday, October 28, during the early New York session.

For the first time since late July, SOL price has registered a weekly close above the crucial resistance level around $161, thus signaling the re-emergence of bullish sentiment. However, the altcoin must consistently close above the July peak of around $187 in the weekly time frame in order to invalidate potential market reversal.

In case of a potential crypto selloff before the end of this year, Solana price will find a robust support level above $120.

Moreover, the SOL price has rebounded severally from the support level above $120 since the crypto consolidation began in March.

Top Factors Driving Solana Price Up

As Coinspeaker has severally reported in the past, the Solana network has emerged as a top tokenization platform. According to the latest on-chain data, the Solana network has a total value locked (TVL) of over $6.2 billion and a stablecoins market cap of over $3.7 billion.

The Ethereum network, on the other hand, has a TVL of over $48 billion and a stablecoins market cap of nearly $84 billion. However, the Solana network has outstripped the Ethereum network in on-chain activity in the recent past.

On the top list, the Solana network registered over 4.1 million daily active addresses whilst the Ethereum network reported around 303k. Interestingly, both networks registered a similar daily revenue of around $1.3 million in the past 24 hours, signaling Ethereum is more expensive than Solana despite the former’s impressive growth in layer two scaling solution.

Despite operating on the Solana network alone, the Raydium Protocol has flipped the Uniswap (UNI) platform in daily DEX volume. The total market cap of Solana’s Liquid Staking Tokens (LSTs) has surpassed $5 billion, a new all-time high.

In the NFT sector, the Solana network has outperformed Ethereum’s and Polygon’s combined, with over 59k users. Most importantly, the Solana network has led other altcoins in weekly cash inflows, whereby data from CoinShares shows that SOL registered over $10 million in cash inflows compared to notable cash outflows from Ethereum and Cardano.

The Solana network has significantly thrived in the meme coin sector, whereby its meme space is currently worth over $11.3 billion and has a daily average traded volume of around $2.6 billion.

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