Solana is one of the top networks, controlling a market capitalization of more than 81 billion dollars, according to CoinMarketCap data. Even as crypto prices rise and sentiment improves, SOL has struggled for momentum.
Solana Retraces: Will Prices Break $200?
In the last trading week, market data shows that SOL is stable, posting a 3% dip in the last 24 hours. The slide comes as Bitcoin, Ethereum, and Dogecoin march higher.
To put the numbers in perspective, Dogecoin is up 22% in the last week. Bitcoin added 8% during that period, approaching March’s high.
As SOL prices come down from this week’s high of around $185, CoinMarketCap experts note that Solana’s ecosystem is growing. At the same time, the number of daily active users continues to tick up, an indicator of interest.
The uptrend was strong last week. After prices fell in early September before quickly recovering, the SOL hike saw SOL rise rapidly. The coin has gained nearly 50% in the past two months, breaking above $150.
In terms of areas, SOL remains within a bullish formation. Even if the pullback lowers the coin, local support will be around $150. If buyers find support at this level, it could set the stage for a new leg, which has risen to the psychological round of $200.
Solana Price Drivers: A Thriving Ecosystem, Institutional Support
Potential growth factors include Solana’s active ecosystem. Last week, active users every day rose about 7 million. However, with the prices moving back, the number is now closer to 5.5 million.
Most of the users are meme coin sellers who are leading in the transfer trade from places like Raydium and Jupiter.
A few months ago, following the launch of the Pump. fun In January, SOL benefited from tens of thousands of meme coins going live. Each launch requires a SOL lock in order to generate revenue, drive up demand and raise prices.
While meme coins exist the key in the evolution of Solananetwork and has a decent DeFi ecosystem. DeFiLlama data exhibitions that its contracts control more than 6.2 billion dollars, more than 50% of which consists of stablecoins. Of Solana’s 3.80 billion stablecoins, more than 69% are USDC.
Top DeFi dapps include Jito, a liquidity staking protocol that manages over $2.4 billion. Others include Solayer-a financial recovery solution- and Ondo Finance-a real-world asset (RWA) tokenization platform- managing $275 million and $127 million, respectively.
In addition to strong on-chain growth, Solana may benefit from institutional support. Robinhood, a trading platform, recently he started offers SOL to EU customers.
At the same time, VanEck, one of the issuers of the Bitcoin and Ethereum ETF, released the first exchange-traded note (ETN) in Europe. ETN will also offer great rewards.
Insert image from Adobe Stock, chart from TradingView