Solana price hits 2+ year high — Is a new SOL all-time high on the means?

Solana’s native token, SOL (SOL), surged by 35% between Nov. 5 and Nov. 11, reaching its highest degree since December 2021 at $222. This motion has led merchants to take a position whether or not the all-time high of $260 is inside attain, particularly after Bitcoin (BTC) crossed  $84,500, pushed by regular institutional inflows and anticipated regulatory readability in the United States.

SOL has outperformed the broader altcoin market, which noticed a 33% enhance over the similar six-day interval ending Oct. 11. Investors’ optimism concerning SOL is partly fueled by the enlargement in Solana’s sensible contract exercise, as evidenced by the complete worth locked (TVL).

The TVL on Solana escalated to $7.6 billion by Nov. 10, marking the highest since December 2021. Key decentralized functions (DApps) like Jito, Raydium, Drift, and Binance’s liquid staking considerably contributed to a 36% progress in deposits. 

Solana’s exercise enhance is just not restricted to memecoin buying and selling

There is a few legitimate criticism concerning Solana’s heavy dependence on memecoins, together with Dogwifhat (WIF), Bonk (BONK), and Popcat (POPCAT), all of which have surpassed the $1.5 billion market capitalization threshold. Decentralized token launch platforms like Pump.enjoyable have been the most important drivers behind the enhance in Solana decentralized exchanges (DEX) volumes.

Weekly DEX volumes on Solana surged to $17.1 billion in the week ending Nov. 2, a determine not seen since March 2024, and akin to a 26% market share, surpassing even the main DApp-focused blockchain, Ethereum. Solana additionally managed to seize $88.2 million in month-to-month charges, which is important for addressing community safety issues.

By comparability, the Ethereum community, with a TVL over 7 instances larger than Solana, earned $131.6 million in month-to-month charges. Similarly, Tron, one other blockchain emphasizing base layer scalability, collected $49.1 million in charges over 30 days. These figures don’t embrace broader ecosystem revenues, which embrace notable contributions like $100.2 million from Jito and $83 million from Raydium.

Evaluating platforms solely by TVL and costs is perhaps deceptive since not all DApps want high volumes to be important. However, they’re essential for adoption and attracting new customers, setting the stage for sustainable progress and elevated demand for SOL accumulation and utilization. 

For instance, Magic Eden, Solana’s main non-fungible token (NFT) market, recorded 77,160 energetic addresses over the previous 30 days, as reported by DappRadar. In distinction, OpenSea, a comparable service on the Ethereum community, noticed 37,940 energetic addresses throughout the similar timeframe.

This information offers stable proof of how the Solana community has attracted customers past the memecoin frenzy, suggesting that SOL’s price may even see additional advantages. However, to find out if merchants are excessively leveraging their positions, one ought to analyze the SOL perpetual futures.

Related: 80% of memecoins pumped after Binance listing in 2024

A constructive funding charge signifies that lengthy positions (patrons) are paying for leverage, which generally fluctuates between 0% and a pair of% per thirty days in impartial markets. The latest surge to five% on Nov. 10 advised a non permanent over-enthusiasm, however the newest information from Nov. 11 reveals a impartial leverage price of 1.8% month-to-month.

In phrases of onchain and derivatives metrics, SOL seems to be on a path to attaining an all-time high, bolstered by elevated community exercise and no indicators of extreme leverage.