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

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As a seasoned crypto investor with over a decade of experience in the digital asset market, I have seen my fair share of bull runs and bear markets. The recent surge in Solana (SOL) has certainly caught my attention, especially considering its impressive performance relative to top-tier altcoins like Ethereum.

In the predicted uptrend for cryptocurrencies, Bitcoin, currently priced at approximately $68,980 with a daily volatility of 2.1% and a market cap of $1.36 trillion, is showing signs of a potential increase in the short term. Meanwhile, Solana, one of the leading altcoins, has stood out for significant gains. This digital asset, valued at around $175.2 with a daily volatility of 0.6%, boasts a market cap of $82.3 billion and an average traded volume of over $3.6 billion each day. Over the past two weeks, Solana has experienced a surge of more than 15% to trade around $177 during the early New York trading session on October 28.

For the first time since late July, Solana’s price has ended the week above the critical resistance level at approximately $161, suggesting a resurgence of positive sentiment among traders. Yet, for the bullish trend to be confirmed, Solana needs to maintain weekly closes above its July high of around $187, otherwise, it may indicate a potential shift in market direction.

If there’s a possible cryptocurrency downturn by the year-end, the Solana price is likely to encounter a strong level of resistance above $120.

Additionally, the SOL price has bounced back multiple times from the resistance level over $120 since the cryptocurrency market consolidated in March.

$SOL

Literally shaking at the chance of us seeing a breakout from this range.

— gumshoe (@0xGumshoe) October 27, 2024

Top Factors Driving Solana Price Up

Previously, Coinspeaker has frequently highlighted that the Solana network stands out as a leading tokenization platform. Recent on-chain statistics show that the Solana network boasts a Total Value Locked (TVL) exceeding $6.2 billion and a stablecoin market capitalization surpassing $3.7 billion.

As an analyst, I’d rephrase that as follows: Compared to Ethereum, the TVL (Total Value Locked) on the Solana network currently exceeds $48 billion, while its stablecoins market cap hovers around $84 billion. Notably, Solana has surpassed Ethereum in terms of on-chain activity in recent times.

As a crypto investor, I’ve noticed an interesting comparison between Solana and Ethereum. In the last 24 hours, Solana network boasted over 4.1 million daily active addresses, while Ethereum reported approximately 303k. However, it’s intriguing that both networks generated roughly similar daily revenue of around $1.3 million each. This suggests that despite Ethereum’s significant growth in layer two scaling solutions, its transactions might be more costly than Solana.

Even though Raydium Protocol only functions on the Solana network, it has outpaced Uniswap (UNI) in daily decentralized exchange (DEX) volume. Additionally, the combined market capitalization of Solana’s Liquid Staking Tokens (LSTs) has reached an unprecedented $5 billion, marking a new record high.

In the field of Non-Fungible Tokens (NFTs), the Solana network has surpassed the combined performance of Ethereum and Polygon, boasting over 59,000 active users. What sets Solana apart is its leadership in weekly cash inflows among altcoins. According to CoinShares data, Solana (SOL) recorded more than $10 million in cash inflows, while there were significant outflows from Ethereum and Cardano.

The Solana network has experienced substantial growth within the market of meme coins. At present, the value of its meme-related activities surpasses $11.3 billion, and on an average day, approximately $2.6 billion worth of transactions occur.

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2024-10-28 18:00