Saturday, November 2, 2024

Solana DApp Activity Soars 46%

Solana (SOL), the native token of the high-speed blockchain network, experienced a recent price correction after reaching a seven-week high of $161.80 on September 29th. This drop mirrored a broader market pullback in the altcoin space, with total capitalization (excluding stablecoins) falling from $800 billion to $739 billion within a few days.

Despite the correction, several factors suggest Solana’s potential for a future upswing. Here’s a breakdown of these key drivers:

Resilient Network Usage: Solana network usage has surged in recent weeks, raising questions about SOL’s potential to outperform its competitors. Notably, despite the short-term price dip, SOL is still up 10.4% over the past month.

Market Cap and TVL: Solana remains a dominant player, ranking as the fourth-largest cryptocurrency by market capitalization and the third in total value locked (TVL). TVL measures the value of crypto assets deposited in a network’s smart contracts.

Competitive Advantage: Solana boasts extremely low transaction fees – a mere $0.02 on average compared to Ethereum’s $2.50 and BNB Chain’s $0.08 (according to GasFeesNow). This low-cost advantage attracts users seeking alternatives to complex and expensive layer-2 scaling solutions.

Analysts believe Solana’s scalability opens doors for significant growth. Here are some key potential future drivers:

Stablecoin and Remittance Adoption: VanEck, a major asset manager, predicts a potential 120% increase in SOL’s price due to its scalability, which is critical for the adoption of stablecoins and remittances.

Institutional Interest: Growing institutional adoption and the potential to leverage value from Ethereum layer-2 solutions are seen as further catalysts for SOL.

Gameshift and Mobile Integration: The recent announcement of Gameshift (a Solana Labs-backed gaming development API) and the launch of the sub-$499 Solana-powered smartphone, Seeker, are potential catalysts for increased network demand. Gameshift aims to simplify Web3 integration for traditional game developers, while Seeker targets mobile users with a focus on DeFi and NFTs.

Several metrics point to a rise in network activity on Solana:

TVL Remains Stable: Solana’s TVL remained relatively flat compared to previous weeks but still surpasses BNB Chain’s TVL.

DApp Volume Growth: Solana’s DApp volume saw a significant 46% increase compared to the previous week, outperforming Ethereum’s 12% growth during the same period.

Active Address Growth: The number of active addresses interacting with Solana smart contracts surged by 13%, driven by gains on the Jupiter exchange.

Conclusion

While the recent price correction may cause some concern, the overall outlook for Solana remains positive. Strong network fundamentals, rising user activity, and potential future growth catalysts suggest that SOL could outperform the altcoin market in the long run. Based on current trends, a potential price resurgence towards $180 or higher isn’t out of the question.

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Author: Sb

This post was originally published on cryptonewsfarm.com

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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