- Solana’s native SOL token surged to an all-time high of $264.50 on November 22, driven by Bitcoin’s rally and a frenzy around memecoins
- Solana has sustained over $6 billion in daily decentralized exchange (DEX) trading activity, securing a 45% share of the overall market
- Solana’s network boasts a total value locked (TVL) of $9.2 billion, giving it a 73% advantage over BNB Chain, and its robust DApp activity and resilient SOL futures markets suggest potential for further price increases
Solana’s native SOL token surged to an all-time high of $264.50 on Nov 22, propelled by Bitcoin’s rally toward $100,000 and a frenzy around memecoins. This raises the question – can SOL reach $350 next?
Solana’s Growing Popularity
Solana has sustained over $6 billion in daily decentralized exchange (DEX) trading activity throughout the past week, securing a 45% share of the overall market. This surge is unprecedented compared to other networks. DappRadar reports that 293 million unique active addresses have interacted with DApps on Solana over the last seven days. Many notable Bitcoin traders have been drawn in by the allure of quick gains through memecoin trading on Solana.
The Risks of Leverage Trading
Leverage presents a risk factor for SOL’s price as excessive optimism among futures traders can lead to cascading liquidations. Even a standard 5% intraday price decline can trigger the liquidation of a position with 20x leverage. The funding rate for SOL futures reached a peak of about 42% per month on Nov 22, which is high but not alarming. It has since settled at 24% monthly for long positions.
The Outlook for Further Gains
Although Solana’s onchain data might be skewed by its low transaction fees, the robust activity in DApp deposits and the resilience of the SOL futures markets suggest a strong bullish trend. This indicates the potential for further price increases beyond the current all-time high of $264.50.
Conclusion
The combination of growing DApp usage, leverage trading, and a bullish derivatives market outlook suggest Solana’s SOL token could see additional gains after reaching a new all-time high. However, the risks of overheated leverage and memecoin mania should be monitored as well.
