Solana had a great year. After a worrying decline towards the end of 2022, a jump in the second half of 2023 pushed the stage further into the top five.
By visible standards, not only is SOL, the native token up 100% in the last 10 months, but the network is now a hub for meme money. Solana is the third largest smart contracts platform after Ethereum and BNB Chain.
Considering how fast SOL has grown over the years, there is a good chance that the coin is undervalued. Many factors support this view. If we look at X, one analyst notes that Solana is approaching or has already broken levels above the metrics that the public closely monitors.
Solana Exploding: Revenue, TVL Rises
Citing Artemis data, analyst said Solana is fast approaching the $12.5 million revenue mark. Solana’s income has been steadily increasing over the past few weeks and the better part of October.
As with all public ledgers, revenue comes from gas bills. The more efficient the blockchain, the more fees users pay to transfer tokens or issue smart contracts. Notably, revenues, according to Artemis data, have been rising slowly since late 2022, stabilizing in H1 2023 before exploding in September 2023.
In addition to revenue, Solana is also posting steady growth in net value (TVL). Simply put, TVL is the asset held by all of its on-chain protocols. Its TVL has been gaining steam since late September and is currently over $6 billion. However, it is still less than the $10 billion registered in October 2021.
So far, the DeFiLlama data revealed that Solana DeFi contracts manage 6.2 billion dollars. The largest is Jito, a liquid staking platform that manages over $2.4 billion. On the other hand, one of the largest DEXes, Raydium, controls more than $1.4 billion in assets, up 28% last month.
Meme Coin Activity Spikes, Will SOL Break $200?
With increased TVL and revenue, the network has seen impressive volume spikes, showing on-chain involvement, especially from agreements like Raydium. The interaction is directly driven by the work of the meme character, which increased after the launch of Pump.fun in January 2024.
On October 27, one reviewer looked at that Solana surpassed all blockchains, including Aptos, Injection, and Cardano, in weekly DEX trading volume. Over $15 billion in DEX trading volume within seven days, representing a 150% increase over Ethereum.
Currently, SOL is changing hands at around $180. It is down from $240, the 2024 high, and $260, registered in 2021. Only time will tell if the coin will break above the $200 round number, rising to print a new high of 2024 in the next two months.
Insert image from Adobe Stock, chart from TradingView
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