Solana’s Price Cools After a Surge
The price of SOL, the native cryptocurrency of the Solana blockchain protocol, has experienced a slight decline after a significant rise. It is currently trading at around $112 per token, down about 10% from its recent highs. However, SOL is still up over 60% since the beginning of the month and more than 430% from its lows in October.
While the broader cryptocurrency market has been performing well, SOL has seen increased demand due to a surge in activity on its network. This includes a rise in Solana-based meme coin trading and an influx of new users on the Solana DeFi protocol.
Solana’s On-Chain Expansion
An increase in meme coin trading and new users on the Solana DeFi protocol has led to a significant expansion in activity on the Solana network. The seven-day moving average of new addresses interacting with the network is close to an all-time high, while monthly active addresses are at their highest since October 2022. Additionally, daily fees collected by the Solana network reached an all-time high, and trading volume on Solana-based decentralized exchanges briefly surpassed that of Ethereum-based exchanges.
The network’s fast transaction throughput and low fees are attracting new users to stick around despite speculative motives initially bringing them to the network.
Should You Buy the Dip?
Considering the recent price surge, traders may be wondering if now is a good time to buy SOL. Some long-term bulls might prefer to wait for a larger pullback, potentially to around $75. However, there is no guarantee that SOL will retrace that far, and in the near term, it could test its April 2022 highs. With strong fundamentals on the Solana blockchain, the medium-term trajectory remains positive, and price predictions for 2024 are bullish.
Hot Take: Solana’s Promising Future
Solana’s price may have cooled off slightly, but its impressive on-chain expansion and growing adoption indicate a promising future. With increased demand and activity on the network, SOL has the potential to continue its upward trajectory. While there may be short-term fluctuations, the overall outlook for Solana remains positive, with price predictions indicating a retest of all-time highs in the coming years.
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