Solana has experienced a phenomenal year of growth, defying expectations after significant dips in late 2022. By the second half of 2023, Solana firmly positioned itself among the top five blockchain platforms. The native token, SOL, has surged by an impressive 100% over the last ten months, transforming the network into a thriving hub for meme coins. As of now, Solana ranks as the third largest smart contracts platform, trailing only behind Ethereum and the BNB Chain.
Understanding Solana’s Rapid Expansion
Solana’s rapid expansion over the years has led many analysts to believe that the coin might be undervalued. This belief is supported by various factors. According to insights shared on X, Solana is approaching or has already surpassed key metric levels that the community closely tracks.
Solana Exploding: Revenue and TVL Soaring
According to Artemis data, Solana is quickly closing in on the $12.5 million revenue mark. The network’s revenue has been on a steady incline over recent weeks, especially throughout October. In blockchain networks, revenue is primarily generated from gas fees, which increase with higher blockchain activity. Artemis data indicates that Solana’s revenue has been consistently rising since late 2022, stabilizing in the first half of 2023 before experiencing a significant boost in September 2023.
Beyond revenue, Solana is also showing consistent growth in its total value locked (TVL). TVL represents the total assets managed across all on-chain protocols. Solana’s TVL has gained momentum since late September and currently exceeds $6 billion. However, it remains below the $10 billion mark achieved in October 2021. According to DeFiLlama data, Solana’s DeFi protocols manage approximately $6.2 billion, with Jito, a liquid staking platform, controlling over $2.4 billion. Raydium, a prominent decentralized exchange (DEX), manages assets exceeding $1.4 billion, marking a 28% increase over the last month.
Meme Coin Activity Spikes: Will SOL Breach $200?
With a rising TVL and increased revenue, Solana has witnessed significant volume spikes, indicative of heightened on-chain activity. This surge is largely driven by meme coin activity, which saw a significant boost following the activation of Pump.fun in January 2024.
On October 27, analysts observed that Solana had surpassed all other blockchains, including Aptos, Injective, and Cardano, in weekly DEX trading volume. With over $15 billion in DEX trading volume over seven days, Solana’s activity represented a 150% increase compared to Ethereum. Currently, SOL trades at approximately $180, down from the 2024 high of $240 and the 2021 peak of $260. Whether the coin will break above the $200 mark and achieve new highs in the upcoming months remains to be seen.
Conclusion
As Solana continues its upward trajectory in the blockchain space, its growth story is marked by increased revenue, rising TVL, and heightened meme coin activity. While the future price action of SOL remains uncertain, its current performance highlights the platform’s potential to break new ground in the coming months. Investors and enthusiasts alike will be watching closely to see how Solana’s journey unfolds.
