Here's a look at what factors could be driving Solana ($SOL
) above the $200 mark for the first time since April
Solana's Level 1 (L1) blockchain has seen a significant increase in user activity over the past month. Over the past 30 days, the number of active addresses and transactions on the network has grown by double digits. Such trends could support the SOL's first breakout above the $200 mark since April.
The number of Solana users is growing
Demand for the #SolanaNetwork has grown significantly over the past 30 days, as evidenced by the increase in the number of daily active addresses. According to Artemis, 7 million unique addresses made at least one transaction on Solana during this period. This represents a 70% increase on the previous figure.
The increase in active addresses also led to a corresponding increase in the daily transaction volume on the network. During the same 30 days Solana processed 44 million transactions. The growth of the index amounted to 24%.
The inflow of new users to Solana has strengthened its position in the decentralized finance (DeFi) segment. Over the last week, Solana overtook Ethereum and other major networks such as Base, Arbitrum and Polygon in terms of daily trading volume on decentralized exchanges (DEX). The figure for Solana was over $13 billion, far surpassing Ethereum with its $8 billion.
In addition, the total value of assets locked in the Solana protocol (TVL) reached $6.22 billion, the highest since January 2022.
SOL prediction: the key factor is network utilization
As the number of network users increases, the practical utility of its core asset (in this case SOL) increases. High network utilization means more transactions. These often require more of the network's native tokens to pay fees. This drives demand for the asset and raises its price.
If activity on the network continues to grow and increase demand for SOL, the price could overcome the resistance level at $172.53. Its net breakout would send the altcoin to $194.12. If the bullish momentum continues, Solana could recover above $210.18. The price has not visited this level since March.
However, if user activity drops and demand for SOL weakens, the price could test support at $148.15. Failure to defend this level risks a drop to $133.76, which would negate optimistic forecasts.
