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Solana (SOL) has hit another record: Today, it has more than 75 million monthly active addresses. The increase speaks to the growing popularity of the network, especially in areas such as developer and user work within decentralized applications (dApps), DeFi, and NFT.
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With such an increase in Solana’s operations, the platform stands out from the rest as it remains one of the riskiest and most efficient blockchains available.
Despite this positive development, recent market activity has seen significant volatility in SOL. On September 18, Solana faced $121,000 in short terminations and approximately $3.20 million in long terminations, with Binance seeing most of its long positions closed. This heavy liquidation of long positions indicates that traders may be cautious about Solana’s imminent price movement.
Source: Artemis
Price Forecast Shows Probability
While short-term volatility is a concern, Solana’s price forecast points to a bright future. Currently, SOL is trading 14.59% below its estimated price for next month, indicating short-term bearish pressure. However, the price is predicted to grow by 2.59% in the next three months, and strong growth is expected in this direction.
In six months, Solana’s price may increase by 115%, and it is expected to increase by 52% in the next year. This shows that although the short-term future is not very promising, Solana has high hopes for long-term investments.
At the time of writing, SOL is trading at $141.21 up 10.1% and 4.1% in the daily and weekly time periods, data from Coingecko shows.
Increase User Activity
One of the key factors that make Solana strong is that it has a growing user base. Active addresses in the network are the most, as of mid-2023, and stand at 75.2 million in absolute terms so far.
That shows that Solana scales well and can process large amounts of purchases while fees are low; more developers and users have flocked to the platform, and Solana’s ecosystem continues to grow.
This user growth is not just a temporary phenomenon. The introduction of new features and updates in the coming months can accelerate adoption, especially in the DeFi and NFT spaces where stability is a key factor.
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The Network of the Future?
Active address growth and a bright price forecast should put Solana in a stable position. While the shutdowns and lateral moves in the near term may cause some concern for investors, the long term looks promising.
For now, investors may need to be cautious about short-term volatility, but Solana’s long-term prospects remain strong. Those looking to invest in the future may find Solana’s current price a good entry point before the predicted growth takes hold.
Featured image from Protos, chart from TradingView