Solana Breaking All Records; Will SOl Price Smash The $200 Mark?
Solana continued its rally and achieved new highs in December and claimed massive gains. SOL price spiked by almost 70% in the past seven days showcasing increasing appeal among users. Moreover, the SOL blockchain attracted a significant advance in user engagement this month.
Solana Becomes The Centre Of Attraction
Solana gathering a lot of attention on social media regarding BONK and the phone Saga in previous weeks. SOL also broke one more milestone as its price broke the $100 mark recently and surpassed BNB and Ripple‘s XRP last weekend on Saturday as it became the fourth-largest cryptocurrency.
In addition, SOL also broke the previous high in the monthly activity level of Solana’s addresses and reached 16.45 million in December.
Source: Token Terminal
Solana’s chain data reveals that there was also a surge in the daily active users. The daily active users reached a year-high of 458.7K on December 16th, and currently sit at 445.1K, suggesting the potential for the $200 mark in the coming days.
Key Reasons Fueling the Solana Price Surge
Ethereum Gas Fees: Ethereum’s skyrocketing gas fees drove users towards more affordable alternatives like Solana, boosting its transaction volume and market value.
Bonk Memecoin and Airdrops: Airdrops on SOL, particularly the popular Bonk memecoin, increased daily activity and contributed to the price uptick.
Minimal Transaction Fees: Solana’s consistently low fees (below $0.01) attracted new users and airdrop hunters, further propelling the price.
Institutional Interest: Growing investment in SOL-based funds, even exceeding inflows into Bitcoin and Ethereum funds, indicates increased institutional confidence in the ecosystem.
Solana Price Technical Analysis
Source: Tradingview
On the technical charts, Solana’s price is surging high trading above the key moving averages showcasing bullishness. The RSI is trading in the overbought zone at 85.19 and MACD is also floating in the bullish zone near 12.99 points. Overall the technical indiactors showcase bullishness in the SOL price.
As per the data of Trading View at the time of writing, SOL is trading at the value of $122.92 with a 5.91% intraday surge in the market cap however the volume has decreased by 14.52% in the past 24 hours. The 24-hour trading volume of the SOl is 5.632 Billion and the current market cap is 52.712 Billion
The performance of the SOL is outstanding this year. As per trading view data, the SOL’s price has surged by 1138.05% year to date and 641.49% in the last 6 months. It gave a remarkable return of 535.95% in three months. Moreover, its price doubled last month as it gave a return of 116.75%.
Conclusion
Solana had a strong performance in 2023. It has achieved several milestones and records, such as breaking the $100 mark, becoming the fourth-largest cryptocurrency, and reaching new highs in user activity and engagement. Solana’s price surge is driven by various factors, such as its low fees, high scalability, innovative features, and institutional interest. Solana has the potential to smash the $200 mark and challenge the dominance of Ethereum.
Disclaimer
This information is for informational purposes only and should not be construed as financial advice. Please conduct your own research and due diligence before making any investment decisions.
