As a seasoned crypto investor with a knack for spotting promising blockchain ecosystems, I’ve been closely monitoring the Solana (SOL) phenomenon since its inception. The surge in popularity and adoption of this underrated contender has been nothing short of meteoric, outpacing even the mighty Ethereum in trading volume.
Based on findings from Step Finance, the recent increase can primarily be attributed to the widespread appeal of meme coin initiatives and Solana’s renown for cost-effective and efficient token minting. Solana’s latest achievement solidifies its status as a prime location for token generation, particularly for meme coins.
The surge in token usage occurred simultaneously with a rise in trading volumes and an uptick in on-chain activity. On the same day, decentralized exchanges (DEXs) operating on Solana reported trading volumes of over $7.1 billion, while the total value locked within the network reached $8.8 billion, as shown by Artemis’ data.
The daily income from fees surged significantly, reaching a total of approximately $13.9 million. This boosted the three-month accumulated revenue, pushing it up to around $6.9 million.
The significance of Solana’s rise was evident when compared to Ethereum. In the past 24 hours alone, Solana recorded a trading volume of approximately $6.762 billion, nearly double that of Ethereum which stood at around $3.991 billion. Over the last week, Solana’s trading volume surged to an impressive $44.54 billion, significantly outperforming Ethereum’s $15.43 billion, according to DeFiLlama.
The growing enthusiasm towards Solana is evident as more institutions express interest, with the recent submission of applications for Solana-based exchange-traded funds (ETFs) in the U.S. market. Bitwise Asset Management has now joined the ranks of VanEck, 21Shares, and Canary Capital by filing an application for a Solana ETF.
On November 21, Bitwise submitted their S-1 form to regulatory bodies, having previously established a statutory trust in Delaware. Bitwise’s CEO, Hunter Horsley, expressed great optimism regarding Solana’s future. In an interview with Blockworks, he stated, “It’s an exceptional emerging asset and narrative.” The upcoming US presidential election was also a consideration for Bitwise when filing for a Solana ETF, as Horsley noted, “It seems like a beneficial time to interact with regulators.
SOL’s Meteoric Rise in 2024
SOL is the native cryptocurrency of the Solana blockchain and is one of the best-performing in the market currently in 2024, showing the quality of activities on the blockchain. The SOL has jumped an astonishing 160% so far this year, breaching the $262 all-time high and setting consolidation around $260. The growth has positioned Solana to be one of the serious blockchains out there, hence pushing its market capitalization to about $121 billion.
A large portion of the price surge can be linked to the increased usage of projects built on Solana, notably in the meme coin and DeFi arenas. The platform’s affordability and scalable structure have drawn in developers and investors alike. Notably, meme coin activity on Solana has seen a remarkable increase, with ventures such as Pump.fun garnering considerable attention. This ecosystem now boasts a market value surpassing $8 billion, with a daily trading volume of $4.3 billion, underlining the blockchain’s expanding influence in the market.
The influence of institutions has significantly contributed to the rise in SOL’s price. Companies such as Bitwise and VanEck, by submitting multiple Solana ETF applications in the U.S., have drawn attention from traditional financial players towards the token. As regulatory frameworks adapt, it is anticipated that Solana will become more integrated within institutional investment portfolios. Moreover, platforms like Robinhood have resumed SOL trading, making it easier for a wider range of investors to participate.
Experts continue to express optimism regarding its future potential, with predictions that its value could reach approximately $400 by the end of 2024. This bullish outlook is based on the continued activity on its blockchain, increased adoption, and a generally positive economic climate for cryptocurrencies.
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2024-11-24 14:24