Solana (SOL), the fourth-generation blockchain, has made a remarkable comeback, looking at on-chain metrics. Citing data from Artemis, Step Data Insights on This development comes as SOL prices have fallen past the resistance level in recent months.
Solana’s Resurgence Continues, Daily Active Wallets Flip Ethereum
According to Step Data InsightsSolana’s daily active wallets currently hover around 400,000, slightly past Ethereum’s. This spike in activity suggests that Solana is attracting a growing user base, and more people are eager to explore its ecosystems consisting of DeFi, NFTs, and other protocols.
Additional data from Artemis shows that Solana also eclipses Ethereum in the number of daily transactions. While Ethereum leads the way in DeFi Total Value Locked (TVL), Solana’s low fees and scalable environment could explain why users are choosing this powerful network.
Overall, the Solana recovery could be driven by recent favorable price action in Q4 2023. To quantify, Step Data Insights notes that the SOL has risen by more than 210% in the past three months. During this time, ETH’s gains are limited.
The analytical platform states that the coin rose only 39%. To illustrate, the SOL rose from around $17 to a peak of around $70 over the past three months. Meanwhile, ETH grew from around $1,500 to a peak of around $2,300, recorded on December 6.
This recovery indicates increasing investor confidence. However, time will tell if SOL will increase the gains in the sessions. From the daily chart, prices move horizontally for most of the second half of November through early December 2023.
The immediate resistance line is at $70. With the SOL moving within a bull flag, any rise above the November 2023 highs will provide the building block for a potential move that will lift the SOL to the April 2022 highs of $140.
Discover Bitcoin ETF Hope, Firedancer Lifting Solana
Altcoins, including Solana, have risen as the crypto market recovers. After a court ruling, SOL is relatively steadfast, despite the FTX estate being allowed to liquidate the coin on the secondary markets to repay creditors.
Solana has also benefited from hopes that the Securities and Exchange Commission (SEC) will approve the first Bitcoin ETF. However, the recent release of Firedancer, a validator client developed by Jump Crypto, on testnet supports SOL.
The customer will make the network more resilient and efficient. Firedancer will go live in the first half of 2024. Once it goes live, the new customer is expected to improve Solana’s reliability.
Feature image from Canva, chart from TradingView