Solana’s network activity has surged, leading to predictions its price may reach $200. Currently trading at $147.25, it has risen 52% from yearly lows. Solana outperformed Ethereum in transactions and fees, with notable weekly growth linked to meme coins. Technical analysis suggests a bullish trend; breaking $200 could happen unless it drops below $121 support.
Solana, the well-known layer-1 network, exhibits remarkable activity recently, sparking predictions that its price could touch $200 or even higher. As of Wednesday, Solana (SOL) was trading at $147.25, slightly under last week’s peak of $156, and has surged by over 52% from its year’s low.
Data from third-party sources shows that Solana’s performance is notably outshining Ethereum (ETH) across several crucial metrics. Nansen reports that Solana has clocked in more than 410 million transactions over the past week, marking a 10% week-on-week increase. This surge likely corresponds with the rise of prominent meme coins like Fartcoin, Dogecoin, Bonk, and Official Trump within its ecosystem.
As a result of this spike in transactions, Solana’s network fees collected soared by 22%, surpassing $9.3 million for that period. In stark contrast, Ethereum only managed to handle around 8.6 million transactions in the same time frame, making Solana’s activity 47 times more substantial. Ethereum generated only $4.45 million in fees, far less than Solana’s earnings.
The trend has sustained over the past month, with Solana processing a staggering 1.58 billion transactions against Ethereum’s mere 36 million. According to TokenTerminal, Solana’s network fees have exceeded $400 million year-to-date, compared to Ethereum’s $241 million.
Moreover, when measuring the volumes from decentralized exchange protocols, Solana racked up over $68 billion in the previous 30 days, while Ethereum saw $56 billion. This highlights Solana’s growing dominance in multiple sectors.
Looking at Solana’s price action, the daily chart reveals it hit a low of $94.87 earlier this month, coinciding with fears surrounding its meme coin market. However, it rebounded to reach a high of $156.55 last week. Notably, SOL is currently above a significant support level at $121, which was the low point during multiple months last year, including June, July, August, and September.
In terms of technical analysis, the coin is above its 50-day and 25-day Weighted Moving Averages, forming what appears to be a bullish flag pattern. This pattern typically suggests a breakout is on the horizon. If it breaks above, we could see a bullish short-term outlook, targeting the psychological mark of $200, which indicates a 32% potential increase from current levels. However, a dip below that crucial support at $121 could challenge this optimistic scenario.
