- SOL has seen strong price gains recently, outperforming top altcoins like ETH and AVAX, but faces resistance at key levels.
- DApp activity on Solana is surging, with volume up 55% since March 13th, driven by memecoin mania. This came as Ethereum upgrades drew focus.
- Long-term concerns remain around SOL’s high inflation rate and potential selling of FTX’s SOL holdings, but ongoing DApp growth is positive.
Solana‘s native token SOL has seen significant price gains recently, outperforming top altcoins like Ethereum and Avalanche. However, the long-term outlook remains unclear as SOL faces resistance at key price levels.
Recent Price Action
After hitting a high of $210 on March 18th, SOL has pulled back around 18% but remains up 58% over the past 30 days. This performance beats out ETH and AVAX over the same period. SOL currently ranks as the 5th largest cryptocurrency by market cap.
Growing DApp Activity
The brief dip below $165 shows strong support at that level. Meanwhile, on-chain data indicates surging DApp activity on Solana. Volume has increased 55% since March 13th, far outpacing competitors. Memecoin mania has been a key driver, with major launches like Book of Meme seeing incredible demand.
Impact of Ethereum Upgrades
Solana’s memecoin growth hit a peak right after Ethereum’s DenCun upgrade reduced fees. This intensified competition for memecoin projects. Top Ethereum DApps saw a 77% volume surge after the upgrade. The influx of activity and liquidity to Ethereum seems to have diminished focus on Solana.
Concerns Around Inflation
Analysts point to SOL’s high inflation rate as a long-term concern. The flood of new tokens to fund validators puts downward pressure on SOL price. Additionally, the SOL holdings from FTX‘s collapse pose a potential sell-off risk.
Outlook Going Forward
However, Solana’s ongoing DApp growth suggests continued strength for the network. Despite recent uncertainty, the $165 support level appears likely to hold for SOL in the near-term. Sustained high activity provides a positive outlook on Solana’s comeback.
