Solana, the layer-1 blockchain, has seen a real uptick in user activity this past week. Daily active addresses and new addresses are both on the rise. This shows a growing demand for the network. It comes after a long stretch of declining activity that had pushed Solana’s revenue to a multi-month low.

With this renewed network activity, we expect the demand for SOL to increase. This could lead to a double-digit price rise soon. Let’s look at Solana’s recent growth and how it might affect SOL’s price.

Since October 5, the daily count of unique addresses that have made at least one transaction on the Solana network has jumped by 12%. This is a significant increase after a prolonged slump in user activity.

In September, reports showed a decline in daily transactions on Solana, which hurt its daily revenue. Over the last 30 days, Solana’s revenue dropped by 46%, hitting its lowest point since March.

However, this month has brought a fresh wave of new users to Solana. Data from Hello Moon reveals a 15% increase in the daily number of unique first signers making transactions on the network.

When a blockchain attracts new users, it signals growth and expansion. This can boost the value of its native coin, improve liquidity, increase developer activity, and enhance overall utility.

As expected, the rise in demand for Solana has affected network fees and revenue. According to Artemis data, Solana’s total fees and revenue have risen by 8% in just the past week.

Currently, SOL is trading at $141.06, which is a modest 1% increase over the past week. It’s holding just above the support level at $133.58. If network activity continues to rise, we could see further gains in Solana’s price.

Fibonacci Retracement analysis indicates that SOL could be set for a surge, potentially reaching $188.52 if user engagement keeps growing.

On the flip side, if the network sees a drop in user activity and demand for SOL weakens, the price could fall below support. This might lead to a dip down to the August 5 low of $110.