Solana (SOL), a Layer 1 blockchain, has seen a big jump in user activity recently. In just the past month, both daily active addresses and transaction counts have shot up significantly. This rise in demand might just push SOL above the $200 mark for the first time since April.
So, what's driving this surge? Over the last 30 days, the number of unique addresses on Solana has grown impressively. According to data from Artemis, 7 million unique addresses completed at least one transaction on the network. That’s a whopping 70% increase!
This growth in active addresses naturally leads to more transactions. During the same period, Solana processed 44 million transactions, which is a solid 24% increase in daily transaction volume.
What’s even more interesting is how this influx of users is boosting Solana's decentralized finance (DeFi) sector. In the past week, Solana has outperformed Ethereum and other big players like Base, Arbitrum, and Polygon in daily decentralized exchange (DEX) volume. Solana's DEX volume topped $13 billion, while Ethereum managed only $8 billion.
Additionally, Solana’s total value locked (TVL) stands at $6.22 billion, the highest it’s been since January 2022.
As more users engage with the network, the value of its native asset, SOL, tends to rise. Higher usage means more transactions, which often require more tokens for transaction fees. This increased demand can drive up the price.
If Solana keeps this momentum going, the current price of $166.15 could break through the resistance level at $172.53. If that happens, the altcoin could reach $194.12. And if buying interest continues to grow, we might even see Solana reclaim $210.18, a level last hit in March.
On the flip side, if user activity drops and demand for SOL weakens, we could see the price test support at $148.15. If it can’t hold that level, it might fall further to $133.76, which would invalidate the bullish outlook.