Solana price hits new high, three reasons revealed
Recently, the price of Solana (SOL) has risen rapidly, from $156 on November 5 to $225 on November 12, an increase of 43%! Everyone is watching, thinking that SOL's momentum may break through the historical high of $260. In particular, Bitcoin is also powerful, breaking through the $90,000 mark and setting a new record of $93,434.
Let's take a look at what secret weapon is behind the soaring price of SOL?
First, the on-chain activities are hot and investors are full of confidence
The price of SOL has risen so sharply, thanks to the activities on the Solana chain. Investors saw that the trading volume of the decentralized exchange (DEX) based on Solana was rising, rising 43% in a week, reaching a historical high of $26.1 billion! This market share has exceeded Ethereum, don't you think it's amazing?
Second, the value locked in smart contracts has soared, and users have frequent interactions
Not only that, the total value locked in smart contracts (TVL) on Solana has also risen rapidly, up 460% this year, reaching a high of $7.9 billion. Behind this, thanks to DApps such as Jito, Raydium, and Marinade and Binance's liquidity pledge. Users interact more, and the demand for SOL tokens has also increased.
Third, open interest hits a new high, and the derivatives market is hot
Looking at the derivatives market, SOL's total futures open interest (OI) also hit a record high, reaching $4.54 billion. This shows that institutions are becoming more and more interested in SOL. Although there is a little risk when the price adjusts, derivatives data still shows that SOL has the potential to rise further.
Also, the memecoin on Solana has contributed greatly. On November 14, when SOL rose, the price of memecoin on the network also adjusted, and most of them rose by double digits! For example, Dogwifhat, Bonk, Peanut Squirrel and Popcat are all rising rapidly.
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