Solana Price Returns Low Weekly – $90 SOL Possible?
The Solana (SOL) token encountered strong resistance at $102 on January 17 and was on a 23% correction to a 5-week low of $78.60 on January 23. However, the move reversed as SOL bounced back 10% below the 24. Place a temporary end of hours and bear price action. Traders are now questioning whether the recovery is supported by strong fundamentals and whether SOL can bounce back above $90.
Part of the movement may refer to the recently launched “token extension” of the Solana network, the ability to hide balances for secret transfers, transfer hooks for closed gateways, and request payments at the protocol level. These updates are included in v.1.17 of the Solana Labs Authenticator Client, which was announced on January 19th. Plug-and-play functionality is designed for enterprise applications and controller-compatible resources.
Solana's network upgrades prioritize speed and stability
Another source of hope from Firedancer comes from a new third-party authentication client currently under development. Developed by Jump Crypto, this solution aims to increase Solana's processing capabilities to millions of transactions per second and support sharding.
A social media post from @R89Capital shows how Solana's network stability has changed in 2022 after several failures.
In the year It's surprising to see how reliable the Solana has been after a rough 2022, performing admirably as usage increases and dominating the competition in most metrics.
The network continues to evolve, and @jump_firedancer is coming. pic.twitter.com/QDH2iX0Fgf
— R89 (@R89Capital) January 22, 2024
Solana in 2010 It continues to perform well in 2023, while some of its competitors, including Ethereum Layer-2 scaling solutions, have experienced outages due to blockchain space congestion.
The first successful wave of Solana SPL token airdrops to reach centralized exchanges was marked in December 2023 by Jito (JTO) staking solution and BONK memecoin. The move has caused users to seek SOL tokens as they rush to participate in multiple airdrops, some have confirmed. And others are just guessing.
A quick search on Solana's airdrops on social media shows some investors' keen interest in the events. While there is no way to predict how many of those leads will be implemented, the casual hypothesis is that SOL will increase demand and increase activity in the Solana network.
Related: Crypto Sentiment Index Hits 100-Day Low as Bitcoin ETFs Fail to Buy
The parameters of Solana DApps give an indication of the revival of SOL value
Solana's first Decentralized Application (DApp) benchmark showed strength in January, with the total value of the network locked (TVL) 15.3 million SOL. The amount deposited in smart contracts of the SOL token decreased by 28% in 30 months, but it is higher than in 3 months. Days.
The Solana network has seen significant growth in transaction activity and volumes. However, it still lags behind competitors like Ethereum and BNB Smart Chain in absolute numbers.
Solana has seen a 6% growth in transactions and a 12% increase in the number of active DApp users in the last seven days. In comparison, the Ethereum network has remained relatively flat over the same period, with BNB Chain and Polygon showing declines of 31% and 19% respectively.
Solana DApp highlights include Jupiter Exchange, which reached 387,780 active addresses in 7 days, followed by Radium with 190,650 users. To put things in perspective, PancakeSwap, the leading BNB Chain DeFi app, has collected 263,010 active addresses in the same period, while Ethereum Uniswap has reached 64,890.
It's impossible to tell if SOL's recent high at $80 reflects high airdrop demand and the newly launched ‘Token Extension', meaning momentum may fade after the initial buzz. Still, the strong interest in Solana Network DApps activity gives confidence that a path to $90 and beyond is possible.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
