The Rise of Solana: Is a $400 Milestone on the Horizon?
Without a doubt, Solana [SOL] has emerged as a crowd favorite in the blockchain realm this year. The question that looms large is whether it can maintain its lead into the year 2025 and propel its native token past the $400 mark.
Recent analysis unveiled Solana as the top dog in the global blockchain landscape, garnering the highest share of traffic among blockchain ecosystems. This accolade has undoubtedly translated to significant gains for the Solana network.
One standout achievement has been the resurgence of its total value locked (TVL), which not only rebounded to 2021 levels but also hit a new all-time high of $10.57 billion on November 19.
The upward trajectory of Solana’s TVL, now surpassing $4.5 billion, signals promising growth prospects, especially after the integration of Sky Protocol’s USDS stablecoin into the ecosystem, envisaging an uptick in liquidity and DeFi activities on the network.
Prospects of SOL Reaching $400
At the current moment, SOL is priced at $237. To provide context, the cryptocurrency was trading at $56 precisely a year ago, illustrating the substantial progress it has made over this period.
Noteworthy bullish momentum, particularly in the latter half of 2024 and the past three months, has played a key role in SOL’s trajectory. This, coupled with organic demand fueled by robust network utility and a surge in daily active addresses to over 5.7 million from less than 1 million, is a positive sign for the cryptocurrency’s future performance.
Furthermore, Solana now stands at the 4th position among the largest crypto projects by market cap, having recently surpassed BNB chain. With a market cap peak of $117.15 billion, Solana is eyeing a potential spot in the top 3, potentially surpassing USDT, if it maintains its impressive growth.
Considering these aspects and the driving forces behind Solana’s success, the prospect of SOL surging beyond $400 by the cycle’s peak seems plausible.
However, the crypto landscape is dynamic, and factors like liquidity shifts could favor other projects. If SOL fails to capitalize on such rotations, the path to reaching the $400 milestone may face constraints.