Top 3 Reasons Why Solana’s Price Rise Has More Room to Run

Solana price regained its momentum and jumped for five consecutive days and reached its highest point since December 6.

Solana (Sol) reached a high of $245 on Saturday, up 42% from this month’s low, bringing its valuation to $117 billion. It has become the fifth largest cryptocurrency after Bitcoin, Ethereum, Ripple, and Tether.

Here are some of the main reasons why SOL is rising and why this rise is likely to continue.

Ecosystem growth in Solana

Solana jumped due to the continuous growth of the ecosystem. Its meme coins have grown and accumulated over $22 billion in market capitalization. official trump (Trump(Unveiled by President-elect Donald Trump on January 17, its value is $4.4 billion).

Another popular meme coin in the ecosystem is Bonk (Bonk), Dujoyvat (WIF), and fat penguins (Bingo).

Solana is also a big player in Non-fungible token industry. according to CryptoSlam, Solana’s NFT sales have generated more than $81 million in the last 30 days, making it the third-largest player behind Ethereum and Bitcoin.

The Solana ecosystem may continue to grow due to its high transaction speeds, low costs, and the popularity of its decentralized exchange networks. Show data Solana’s DEX networks have processed $32.2 billion in the past seven days, which is higher than Ethereum’s $9.2 billion.

This growth has led to higher network fees, which With a total of $820 million in the last 365 days and $77 million this year. Some of this money flows to Solana stakeholders; They get a 7% return.

SOL ETF hopes firm

Solana’s price also rose as investors anticipate potential SEC approval of ETFs. A Polymarket The poll puts those odds at 77%, meaning the agency under Paul Atkins may be more open to approval.

The Solana ETF is likely to generate increased demand for the coin from institutional investors. This demand would be higher if the agency was open to allowing the deposit of these tokens. In a note this week, JPMorgan expected the Solana ETF to attract between $3 billion and $6 billion in its first year.

Solana price technicals are supportive

The daily chart shows that the SOL token rebounded after forming a double bottom pattern at $175.42. It has now moved above the neckline of the pattern at $222.95, its swing high on January 6.

Solana stock, which was founded by engineer Anatoly Yakovenko in 2020, is still above the upward trend line that connects the lowest volatility since January 23 of last year. It remains above the 50-day EMA, while the RSI is slanting upward.

Therefore, Solana’s price is likely to continue rising, a move that will be confirmed if the token rises above the major resistance level at $264.15, its highest point in 2024.

Solana so far

Yakovenko envisions the blockchain being able to scale to millions of transactions per second, providing a solution to what critics have described as Ethereum’s slow transaction speeds and high fees. The network is designed to support decentralized applications (dApps) and cryptocurrency transactions.

Solana touts faster transaction processing and higher throughput than many of its competitors.

After launching its mainnet in 2020, Solana quickly gained attention for its speed and low-cost transactions, attracting developers and investors. Throughout 2021, the network has grown with numerous decentralized finance (DeFi) projects and non-fungible tokens on its platform.

Solana, currently backed by big-name venture firms like Andreessen Horowitz, continues to enjoy rapid development with efficient blockchain solutions in the ever-growing cryptocurrency space.