Solana’s market cap rises to $117 billion: is SOL on track to cross $400 now?

• A abstract of the important thing observations and progress drivers behind Solana’s spectacular success.
• Why SOL has a transparent probability to rise above $400.

There isn’t any doubt that Solana [SOL] has been probably the most favourite blockchain for a lot of this yr. However can it preserve this lead into 2025, and can this be sufficient to push its native coin above $400?

Recent analysis positioned Solana within the lead because the blockchain ecosystem with the best international site visitors share. In different phrases, it was probably the most most well-liked blockchain community of 2024.

This achievement has paid off for the Solana community.

Probably the most notable methods is that not solely did complete worth locked (TVL) get well to its 2021 excessive, however TVL lately topped out at $10.57 billion on November 19, marking its new ATH.

Supply: DeFiLlama

Solana’s TVL can also be on an upward pattern, lately surpassing $4.5 billion. This progress trajectory might proceed following the most recent integration of Sky Protocol’s USDS stablecoin into the Solana ecosystem.

This transfer shouldn’t solely improve the community’s liquidity but additionally encourage extra DeFi exercise.

What are the possibilities of a $400 price ticket for SOL?

SOL had a press time worth of $237. For context, the cryptocurrency was buying and selling at $56 precisely 12 months in the past, which places into perspective how far it has are available in that point.

However, the bullish momentum and restoration within the second half of 2024 and particularly previously three months are notable.

Natural demand has contributed considerably to SOL’s efficiency and is due to this fact linked to strong utility within the community. This was in keeping with the strong deal with exercise seen over the previous three months.

The community had fewer than 1 million day by day energetic addresses throughout its slowest days in August.

Supply: TheBlock

Solana’s variety of day by day energetic addresses has since risen to over 5.7 million addresses. This was an vital statement as a result of it helps the nascent organic demand for SOL.

An final result that’s encouraging for the retention of institutional buyers, and which may improve demand for the cryptocurrency within the coming months.

Solana has additionally risen up the ranks and at the moment holds fourth place^e place within the listing of the most important crypto initiatives/cash by market capitalization. This was after the BNB chain was lately dethroned.

Solana’s market cap peaked at $117.15 billion on Monday. It might be on monitor to dethrone USDT and enter the highest 3 if it continues its robust progress trajectory.

Primarily based on the above findings and the drivers of Solana’s efficiency, it was clear that SOL has an honest probability of rising above $400 on the peak of the present cycle.

Learn Solana’s [SOL] Value forecast 2024–2025

Then again, nothing is written in stone and it’s doable that the liquidity rotation will favor different initiatives.

If SOL fails to capitalize on that rotation, its possibilities of reaching the aforementioned price ticket could also be restricted.