Solana (SOL) has seen a steady price increase, gaining 3% on Monday, marking its fourth consecutive day of upward movement. Currently priced at $152.94, SOL has a 24-hour trading volume of $11.17 billion and a market cap of $71.67 billion. With a recent 3.65% rise, Solana continues to attract investor attention.
Why is Solana (SOL) Price Going Up?
The recent surge in Solana’s price can be attributed to the growing popularity of Solana-based meme coins. Tokens like Daddy Tate (DADDY), Mother Iggy (MOTHER), and Billy (BILLY) have seen an increase in holders over the past 30 days. This increase reflects a growing interest in the Solana ecosystem, driving demand for SOL, the native token.
Additionally, key on-chain metrics, such as transactions and active addresses, have risen by nearly 7% in the past month, according to The Block. As these metrics increase, more users are engaging with the network, creating a bullish sentiment and fueling further price momentum.
Solana’s On-Chain Activity is Increasing
Higher transaction numbers and active addresses typically indicate greater network interaction. As more users and investors participate in the Solana ecosystem, the demand for SOL grows, boosting its price.
The uptick in meme coin activity, along with the increasing on-chain transactions, suggests Solana could maintain its upward trajectory. However, external factors such as market corrections or regulatory developments should be closely monitored.
How High Can Solana (SOL) Go?
Solana has had an impressive year, with a 594% price surge, outperforming most of the top 100 cryptocurrencies. Trading above its 200-day moving average, Solana is showing strong bullish momentum, which could push its price higher in the short to medium term.
Solana’s liquidity relative to its market cap also supports further price growth. High liquidity reduces volatility and allows large investors to enter the market more easily. If Solana maintains its current growth trends, it could retest previous highs around $208.75. With continued demand and network activity, the price could reach the $250-$300 range.
However, investors should note Solana’s 12.61% annual supply inflation rate, which could put downward pressure on the price if demand slows. While Solana is trending upward, it has only experienced 14 green days in the last 30, accounting for 47%. This highlights periods of volatility.
