Tue 26 Nov 2024 ▪
4
min reading ▪ by
Luc Jose A.
The crypto market is once again witnessing exceptional performance. Solana, often referred to as the blockchain for “fast and accessible solutions”, has just reached a historic milestone. In November, its volumes on decentralized exchanges (DEX) reached an all-time high of $109 billion, significantly outperforming other major blockchains, including Ethereum. This surge is accompanied by an exponential increase in the price of SOL, which is approaching $300.
An explosion in volumes on DEXs
In November, the Solana blockchain recorded unprecedented transaction volumes on its decentralized exchange platforms. According to DefiLlama data, the total reached $109 billion, a dramatic 109% increase from the $52.5 billion recorded in October. This progression places Solana far ahead of Ethereum, whose monthly volumes have capped at $55 billion. A spectacular figure was observed on November 18, with a daily record of $7.14 billion in transactions, a clear sign of the excitement reigning on the network.
These significant figures are not the result of chance. They coincide with the strong comeback of memecoins, which are generating an unprecedented frenzy on DEXs. Two major Solana platforms, Pump.fun and Raydium, saw their revenue explode, with $71.5 million and $182 million, respectively, this month alone. Solana is now the dominant blockchain in terms of DEX volume, underscoring the competitive advantage of the network’s speed and low transaction costs.
The drivers behind the SOL surge
In parallel with the rise of DEXs, the SOL token, native to Solana, saw its value jump 61.5% in November, peaking at $263. This rally takes place in a favorable context for altcoins, while Bitcoin is flirting with the $100,000 mark. Thus, this movement is supported by increasing adoption of the network, illustrated by a record number of 25 million active addresses according to Glassnode. This level of activity reflects massive appeal for Solana in the crypto market, which appears to be gaining ground against Ethereum on several fronts.
On a technical level, the indicators support the thesis of a bullish potential for the SOL. Exceeding a rounded bottom chart pattern could push its price up to $300, a goal deemed achievable in the short term. However, some signals, such as an RSI of 70, suggest that the market is slightly overheated, paving the way for a possible correction towards $200 before further momentum.
The rise of Solana calls into question the future of its ecosystem. As its innovative solutions attract more and more users, blockchain will have to meet the challenge of maintaining this dynamic and meeting growing security and sustainability requirements. However, with record DEX volumes and SOL poised to break all-time highs, Solana appears poised to redefine the rules of the game in the crypto universe.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
