Key Insights
- Solana price has rebounded in the past few weeks.
- The network is beating Ethereum, BSC, and Base in DEX volume.
- Technical analysis suggests that SOL price has more upside.
Solana price has crawled back in the past three weeks, moving from the December low of $116 to the current $141. This rebound may continue in the coming weeks due to its encouraging technical indicators and the fact that it is outperforming networks like Ethereum, BNB Smart Chain (BSC), and Base in a key metric.
Solana is Beating Ethereum, BSC, and Base in DEX Volume
DeFi Llama data indicate that Solana’s decentralized exchange (DEX) volume has remained steady over the past few months, despite the crypto market crash. Its DEX protocols processed transactions worth $111.5 billion in December after handling $114 billion in November.
Most of this volume is coming from Pump, which has become the biggest protocol in the ecosystem. The other top networks in its ecosystem are Meteora, Orca, Raydium, and HumidiFi.
The data show that Solana’s DEX volume rose to over $119 billion in the last 30 days, surpassing Ethereum’s $41 billion, BSC’s $46 billion, and Base’s $22 billion. These numbers are notable because they mean that Solana is handling more DEX volume than the three other chains combined. It is also notable that decentralized finance is one of the biggest industries in the crypto industry.
Additional data indicate that Solana is outperforming other networks in several key metrics. For example, it is the most active chain in terms of the number of transactions. It handled 1.756 billion transactions in the last 30 days, while BSC, Base, and Ethereum collectively handled 408 million, 304 million, and 54 million transactions.
Solana is also the most popular network in the crypto industry. It has over 62 million active addresses, also higher than BSC’s 41 million, Base’s 6.5 million, and Ethereum’s 12 million.
All these metrics are translating to higher fees from its network. It generated $15.5 million in the last 30 days, surpassing Ethereum’s $10.7 million and BSC’s $15 million. Only Tron, which made $27 million, made more money than Solana.
Alpenglow Upgrade to Boost its Activity
Solana’s network may see more activity in the coming months as the developers are working on the biggest upgrade on its network. They will launch the Alpenglow upgrade, which will boost its network speed and change its architecture.
Solana will reduce transaction finality by 100 times, while its transaction per second (TPS) will surge to over 100,000. This will make it a faster chain than other networks, such as Ethereum and BSC.
Additionally, Alpenglow will introduce the Votor and Rotor components to change how the network handles transactions. Votor will increase the speed of consensus, while Rotor will minimize the data transfer between validators.
The Alpenglow upgrade will position Solana well in key industries, such as decentralized finance and real-world asset (RWA) tokenization, where it is gaining market share. For example, data shows that it has more tokenized stocks than Ethereum.
Meanwhile, SOL ETFs are gaining assets and have more room to grow. They have added $61 million in assets this year, bringing the cumulative total to $827 million. They have $1.15 billion, which is 1.14% of the market capitalization.
Solana Price Technical Analysis Points to More Gains
The daily timeframe chart shows that the SOL price has rebounded in the past few weeks. It has already crossed the 50-day Exponential Moving Average (EMA). Additionally, a closer examination reveals that it has formed an inverse head-and-shoulders pattern, a common bullish reversal sign.
The Average Directional Index (ADX) has continued rising, a sign that the bullish trend is gaining momentum.
Therefore, the likely scenario is that the coin continues to rise, with the next key resistance level to watch being at $150.
Crossing that level will likely lead to further gains to $200, which is approximately 40% above the current level. A drop below the key support level at $120 will invalidate the bullish outlook.
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