Solana’s real economic value reached 111% of Ethereum’s in October, driven by DeFi growth and innovative projects like Hivemapper and Helium.
Solana (SOL) has surged 36% in recent weeks, reaching $213. However, it now faces a critical test at the $221 resistance level. Recent data highlights strong network activity and staking growth, but questions remain about sustaining the momentum.
The Solana network has seen a sharp rise in decentralized exchange (DEX) volumes. Data from DeFiLlama shows daily DEX trading surpassed $5 billion for three consecutive days last week, totaling $16 billion between November 10 and 15. Raydium contributed 62% of this activity, followed by Orca with 22%.
Staking activity is also driving optimism. Over $8 billion worth of SOL is now staked, effectively reducing selling pressure and boosting price stability. This marks one of Solana’s strongest metrics during its current rally.
Staked SOL|Source: DefiLlama
Technical indicators support the trend. According to TradingView data, the average directional index (ADX) for SOL stands at 32, well above the 25 threshold that signals a strong trend.
SOL/USDT Chart| Source: TradingView
Solana appears to follow an upward trajectory, but it has failed to overcome the $221 barrier price for some time now. If that level remains, it is believed that the price could range between $201 and $221 over the short term. Any price pullback below $201, likely led by profit-making, is likely to signal a probable reversal of the bullish trend.
While increasing, on-chain transaction activity has not matched the hype around Solana ETFs and the broader market rally.
Glassnode data shows Solana recently hit a yearly transaction high, but the numbers remain moderate compared to expectations. Sustained growth may require higher user engagement.
SOL Transactions Count|Source: Glassnode
Solana’s decentralized finance (DeFi) ecosystem remains a bright spot. Meme coin trading has driven $1 billion in daily volume, highlighting the network’s growing appeal among retail traders.
According to Syncracy Capital, Solana’s real economic value (REV) hit 111% of Ethereum’s in October, up from just 1% a year ago. Application revenue has also grown, reaching 109% of Ethereum’s total.
The network’s impact extends beyond DeFi. Projects like Hivemapper, which has mapped 28% of global roads, and Helium, with its 20,000-device network, are leveraging Solana’s infrastructure to scale operations efficiently. These developments showcase the network’s versatility.
Solana’s Outlook
With robust staking, growing transaction volumes, and strong technical indicators, Solana has built a solid foundation for further growth. However, breaking the $221 resistance remains critical for upward movement.
The huge cup-and-handle formation on Solana’s chart adds to the bullish developments, with possible medium-term targets between $400 and $500.
SOL Cup & Handle Formation|Source: TradingView
This technical formation, defined by a rounded recovery accompanied by a consolidation handle, is highly bullish and reinforces a breakout.
Should SOL break the key $221 resistance level, the breakout may unlock superior prospects for further advancements in line with increased investor attention and network demand.
