Solana Price Reaches Over 2-Year High Signaling Potential For A New All-Time High

Solana's surge to $222 brings SOL price within 20% of its all-time high.

Source: en.coin-turk.com

Solana's native token, SOL, surged by 35% between Nov. 5 and Nov. 11, reaching its highest level since December 2021 at $222. This rally has led traders to wonder if the all-time high of $260 is within reach, especially following Bitcoin’s rise past $87,500, fueled by steady institutional inflows and anticipated regulatory clarity in the United States.

SOL outperformed the broader altcoin market, which saw a 33% gain over the same six-day period ending Nov. 11. Investor optimism around SOL is partly driven by growth in Solana's smart contract activity, as reflected in the total value locked (TVL). The TVL on Solana rose to $7.6 billion by Nov. 10, marking the highest level since December 2021. Key decentralized applications, especially those in liquid staking and yield farming, played a major role in boosting deposits by 36%.

Solana's Activity Growth Extends Beyond Memecoin Trading

There is valid criticism regarding Solana’s dependence on memecoins, with several, like Dogwifhat, Bonk, and Popcat, now exceeding a $1.5 billion market cap. Decentralized token launch platforms have driven the recent surge in Solana's decentralized exchange (DEX) volumes. Weekly DEX volumes on Solana reached $17.1 billion for the week ending Nov. 2, a level last seen in March, capturing a 26% market share and surpassing a major competitor in DApp-focused blockchain activity. Solana also generated $88.2 million in monthly fees, which is essential for enhancing network security.

In comparison, Ethereum’s network, with over seven times Solana's total value locked (TVL), earned $131.6 million in fees over 30 days, while another scalable blockchain collected $49.1 million. These amounts don’t include broader ecosystem revenues, which saw contributions like $100.2 million from staking applications and $83 million from other protocols.

Although measuring platforms solely by TVL and fees can be misleading, as not all decentralized applications need high volumes, these metrics are crucial for adoption, new user attraction, and long term growth. For example, a leading Solana non fungible token (NFT) marketplace saw 77,160 active addresses in the past 30 days, compared to 37,940 active addresses on a similar service on another blockchain over the same period.

This data underscores how Solana is attracting users beyond memecoins, signaling potential benefits for SOL’s price. To gauge if traders are heavily leveraging their positions, it’s helpful to analyze SOL perpetual futures. A positive funding rate indicates buyers are paying for leverage, generally ranging from 0% to 2% per month in neutral markets. A recent peak of 5% on Nov. 10 suggested a brief period of high enthusiasm, but the latest data shows a more neutral leverage cost of 1.8% monthly. With both on-chain and derivatives metrics in view, SOL seems positioned for further gains, supported by rising network activity and stable leverage indicators.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.