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- A summary of the key observations and growth drivers behind Solana’s impressive success.
- Why SOL has a clear chance to rise above $400.
There is no doubt that Solana [SOL] has been the most favorite blockchain for many this year. But can it maintain this lead into 2025, and will this be enough to push its native coin above $400?
Recent analysis placed Solana in the lead as the blockchain ecosystem with the highest global traffic share. In other words, it was the most preferred blockchain network of 2024.
This achievement has paid off for the Solana network.
One of the most notable ways is that not only did total value locked (TVL) recover to its 2021 high, but TVL recently topped out at $10.57 billion on November 19, marking its new ATH.
Source: DeFiLlama
Solana’s TVL is also on an upward trend, recently surpassing $4.5 billion. This growth trajectory may continue following the latest integration of Sky Protocol’s USDS stablecoin into the Solana ecosystem.
This move should not only increase the network’s liquidity but also encourage more DeFi activity.
What are the chances of a $400 price tag for SOL?
SOL had a press time price of $237. For context, the cryptocurrency was trading at $56 exactly 12 months ago, which puts into perspective how far it has come in that time.
Nevertheless, the bullish momentum and recovery in the second half of 2024 and especially in the past three months are notable.
Organic demand has contributed significantly to SOL’s performance and is therefore linked to robust utility in the network. This was consistent with the robust address activity observed over the past three months.
The network had fewer than 1 million daily active addresses during its slowest days in August.
Source: TheBlock
Solana’s number of daily active addresses has since risen to over 5.7 million addresses. This was an important observation because it supports the nascent biological demand for SOL.
An outcome that is encouraging for the retention of institutional investors, and which could increase demand for the cryptocurrency in the coming months.
Solana has also risen up the ranks and currently holds fourth placee place in the list of the largest crypto projects/coins by market capitalization. This was after the BNB chain was recently dethroned.
Solana’s market cap peaked at $117.15 billion on Monday. It could be on track to dethrone USDT and enter the top 3 if it continues its strong growth trajectory.
Based on the above findings and the drivers of Solana’s performance, it was clear that SOL has a decent chance of rising above $400 at the peak of the current cycle.
Read Solana’s [SOL] Price forecast 2024–2025
On the other hand, nothing is written in stone and it is possible that the liquidity rotation will favor other projects.
If SOL fails to capitalize on that rotation, its chances of achieving the aforementioned price tag may be limited.