Solana (SOL) recently reached a three-month high, with its price climbing to $180 as Bitcoin rapidly approaches a potential new all-time high value. This surge reflects a broader rally, but Solana-specific factors, such as an expanding memecoin market and high on-chain activity, are setting it apart. SOL’s 16.3% monthly gain signals a strong performance as more investors see potential in SOL, expecting it to surpass $200.
On-Chain Activity and TVL Growth Fuel SOL
A rise in the blockchain’s total value locked (TVL) indicates the platform’s growing influence in decentralized finance (DeFi). Deposits on the network reached 42.5 million SOL, their highest since 2022, driven by popular projects like Jupiter, Raydium, and Sanctum, which have seen increases in deposits of 13%, 18%, and 17%, respectively. This increase in smart contract activity positions the blockchain as the second-largest network in liquid TVL, overtaking BNB Chain and closing in on Ethereum.
BREAKING: Solana’s TVL climbed to $5.34B, the highest level in 913 days since January 2022. pic.twitter.com/smOecU4Nfn
— SolanaFloor (@SolanaFloor) July 22, 2024
Solana’s Memecoin Craze Hits New Highs
Solana-based memecoins have hit a record market cap, now valued at over $12 billion. Notable tokens like DogWifHat (WIF), POPCAT, and AI-inspired GOAT are leading the charge, attracting a dedicated following. The memecoin trend has also boosted activity on decentralized exchanges (DEXs), with the network now outpacing Ethereum in weekly DEX volume growth, recording a 19% increase.
Leverage and Buying Activity Signal Strength
Solana’s futures market data points to healthy demand with minimal leverage, which historically suggests room for sustained growth. Current metrics show that SOL’s upward movement to $180 might be the start of a broader bull cycle, with potential gains toward $200 as on-chain stability continues.
As Bitcoin continues its bull run, SOL’s momentum highlights the platform’s unique appeal, from rising memecoin valuations to robust DeFi growth. If these factors persist, the blockchain’s trajectory could signal further gains, solidifying its position as a dominant blockchain network.
