Solana price has breached a key bull target of $241 as trading volumes on the decentralized exchange (DEX) within the ecosystem surged on the back of the red-hot meme coin craze.
As a Layer 1 blockchain, Solana continues to gain an advantage in market positioning due to its faster speed and higher efficiency than competitors such as Ethereum, and its price is expected to reach $500 by the end of this year.
If Solana can hold the critical breakout point of $241, the next bullish target will be $291, which has entered the price discovery range - the current SOL historical high is $259.
While a climb to $500 by year end would be a steep climb, even a more modest rise would easily reach the $350-$400 price target range.
According to the latest data, the daily trading volume of DEX on Raydium has exceeded that of Ethereum-based Uniswap by more than twice ($3.93 billion vs. $1.45 billion).
Behind this surge is the explosive growth of Meme coins on the Solana chain. Thanks to the breakthrough success of pump.fun Launchpad, the market value has exceeded US$8 billion, and Solana has become the de facto "home" of Meme coins.
Robinhood drives FOMO sentiment on Solana over the weekend
Solana has been boosted by several positive factors in the past few days. Last week, Robinhood reversed its previous decision to delist several tokens, including Solana, indicating that these tokens no longer need to worry about regulatory pressure from the U.S. Securities and Exchange Commission (SEC) for "unregistered securities."
In addition, a new product called COIN50 Index is designed to help institutional investors easily track market dynamics. The index allows eligible institutions outside the United States, Canada, and the United Kingdom to trade, with Solana's weighting at 6%, higher than its 3.56% market capitalization in the total crypto market.
This means that if a company wants to replicate the COIN50 index, it needs to buy more Solana shares than its market capitalization. Bitcoin’s weight in the COIN50 index is 50%, which is lower than its 59% market share.