Solana (SOL) is showing strong signals of continued bullish momentum as it experiences a remarkable price increase amid increasing on-chain activity and positive market dynamics.
Over the past week, Solana’s price has risen by 13%, reflecting a general trend that reflects the resilience of blockchain networks and investor interest in decentralized assets.
“Recent data suggests that Solana is not only benefiting from the crypto market rally, but is also on its way to becoming a leading player in the decentralized applications (DApps) space,” an analysis by COINOTAG states.
Solana’s price rally has been supported by strong on-chain activity, with trading volumes on decentralized exchanges (DEX) and total value locked (TVL) reaching record levels, indicating continued investor interest.
Strengthening On-Chain Metrics Support SOL Price
The impressive price increase in Solana reflects growing confidence among investors and strong on-chain metrics. Over the past week, Solana-based DEXs have seen a significant increase in trading volume.
In the week leading up to November 11, DEX trading volume reached an unprecedented level of $26.1 billion. This is a 43% increase compared to the previous week, and Solana gained a 37% market share. During the same period, Ethereum’s DEX volume fell to just $13 billion.
Total Value Locked (TVL) is Rising
Solana’s total value locked (TVL) has also been growing noticeably. As of November 13, Solana’s TVL reached $7.9 billion, the highest level since December 2021. This represents a phenomenal 460% increase since the beginning of the year, and user engagement and liquidity have increased significantly thanks to decentralized applications (DApps) in the Solana ecosystem – projects like Jito, Raydium, and Marinade.
Record Increase in Solana Futures
In parallel with the increase in Solana’s price, Solana futures open interest (OI) also rose to an all-time high. According to CoinGlass data, SOL futures open interest reached $4.54 billion, an increase of 57%.
This development signals increasing institutional demand for Solana, but it carries volatility risks as potential price corrections could lead to liquidation of leveraged positions.
Memecoins and the Rise in Solana
Solana’s price rally is being further reinforced by the rise of memecoins on the network. Many tokens have seen double-digit gains; for example, Dogwifhat (WIF) gained 42% in just 24 hours. Other notable memecoin projects include Bonk (BONK) and Peanut the Squirrel (PNUT), both of which have seen significant price increases. This reflects the increasing investor and trader engagement and interest in the Solana ecosystem.
According to Dune Analytics data, the number of daily transactions on the Solana blockchain increased from 24,140 to 36,053 between November 9 and November 13. This increase indicates that demand for the SOL token and user engagement has increased significantly.
To conclude, Solana’s price is supported by strong on-chain metrics, rising DEX volumes, rising TVL, and memecoins, which are strong signs that the bullish momentum is likely to continue.