Solana Price Surge: Key Indicators and Market Dynamics Ahead of $180 Target

Solana’s SOL token has increased by 36% from its recent market lows, though still remains 57% below its all-time high. With significant deposits on its network and a strong DEX trading volume, analysts suggest potential for continued growth. However, a lack of substantial catalysts may hinder its rise to the $180 level last achieved in early March.

Solana’s native token, SOL, has risen 36% from the lows experienced during the recent crypto market crash. Although it failed to sustain bullish momentum after reaching $134 on April 14, various indicators suggest that its upward rally may still continue. Currently, SOL is 57% down from its all-time high due to a notable decline in DApps activity, although an increase in deposits on the Solana network may support further short-term price gains.

Solana ranks as the second-largest blockchain by total value locked (TVL), with an impressive $6.9 billion. Over the week leading up to April 16, SOL gained 12%, outperforming competitors like Tron, Base, and Berachain. Key developments include a 30% increase in deposits on Sanctum, a liquid staking application, alongside 20% growth on Jito and Jupiter, signalling strong network activity.

In terms of trading volume, Solana’s DEX activity has outperformed Ethereum layer-2 networks. During the week ending April 16, Solana DApps recorded $15.8 billion in trading, surpassing Ethereum’s combined volumes by over 50%. Solana reclaimed its lead in DEX activity with a 16% gain, supported by significant increases in volume on platforms like Pump-fun and Raydium, while major Ethereum DApps saw declines.

Measuring Solana’s growth solely by DEX performance does not capture its full potential, as smaller DApps also contribute significantly. Notably, Ondo Finance tokenised $250 million in assets on Solana, while Exponent and Synatra have experienced considerable growth in total value locked over the past month.

Analysts predict the approval of a Solana spot exchange-traded fund (ETF) in the United States by 2025; however, expected institutional interest remains tepid due to the overall lackluster performance of similar Ethereum ETF products. Should the ETF obtain approval, it may bolster Solana’s market presence, especially alongside anticipated developments regarding the US government’s Digital Asset Stockpile.

Investors are awaiting a full audit of US federal agencies’ crypto holdings, initially set for April 7. Journalistic speculation suggests the executive order issued on March 7 may not mandate public disclosure of these findings. Currently, there are no intentions from the government to acquire cryptocurrencies other than Bitcoin (BTC), further complicating potential growth prospects for SOL.

At this moment, there appear to be limited catalysts for SOL to reach the $180 price mark, which it last hit on March 2. The increases in TVL and DEX market share alone may not sufficiently attract new participants into the crypto ecosystem to drive prices higher than the broader market norms.