Analysis: Solana Market Capitalization Reaches $117 Billion – Can SOL Surpass $400 Next?
It is undeniable that Solana (SOL) has emerged as a top favorite blockchain in the current year. However, the question remains: will it maintain its dominance in 2025 and propel its native cryptocurrency above the $400 mark?
Recent assessments have positioned Solana at the forefront of blockchain ecosystems, boasting the highest share of global traffic. This recognition solidifies its status as the most sought-after blockchain network in 2024.
The success of Solana has yielded significant rewards for the network. Notably, its Total Value Locked (TVL) has not only rebounded to 2021 levels but has also recently surged to a new all-time high of $10.57 billion on November 19th.
Witnessing an upward trend, Solana’s TVL has surpassed the $4.5 billion mark and is expected to continue growing, particularly after integrating Sky Protocol’s USDS stablecoin into its ecosystem. This strategic move is anticipated to enhance liquidity within the network and stimulate further decentralized finance (DeFi) activities.
Potential for SOL to Reach $400
Currently priced at $237, SOL has come a long way from trading at $56 a year ago, illustrating significant growth in a relatively short period. The bullish momentum observed in the latter half of 2024 and especially in recent months highlights its potential for further appreciation.
The surge in organic demand has significantly influenced SOL’s performance, closely tied to its strong utility across the network. This aligns with the noticeable increase in address activity over the past three months.
From having less than 1 million daily active addresses during a sluggish period in August, Solana now boasts over 5.7 million daily active addresses. This uptrend indicates growing organic demand for SOL, an aspect likely to attract both retail and institutional investors and consequently drive further demand for the cryptocurrency in the foreseeable future.
Moreover, Solana has climbed the ranks to secure the 4th position among the largest crypto projects by market capitalization, having recently displaced BNB Chain from its position. With its market cap peaking at $117.15 billion, Solana is positioning itself to potentially surpass USDT and secure a place in the top 3 if it maintains its current growth trajectory.
With the strong fundamentals and significant drivers behind Solana’s performance, the odds are favorable for SOL to rally above $400 by the height of the ongoing market cycle.
However, market conditions are volatile, and there is a possibility that liquidity shifts may favor alternative projects. Should SOL fail to capitalize on such rotations, the likelihood of reaching the aforementioned price level could be constrained.