Solana price is ripe for a breakout as ecosystem booms

Solana price rise has gained momentum as its ecosystem and on-chain metrics continue to perform strongly.

Solana (SOL) token rose and retested the key resistance point at $180, its highest level since July 31. It is up 60% from its lowest point on August 8, when most assets fell due to the easing of the Japanese yen. trade.

Solana has outperformed its biggest rival, Ethereum (ETH), which is up just 20% from its August lows.

This performance is largely due to Solana’s success in the meme money industry. Data from CoinGecko shows that the valuation of all Solana meme coins has accumulated over $11.7 billion.

Dogwifhat, the largest meme coin in the Solana ecosystem, has a market value of $2.5 billion. Similarly, while Bonk and Popcat have a market cap of over $1 billion, Cat in a Dog’s World is approaching that milestone.

Meanwhile, data from Blockworks Research shows that Solana’s True Economic Value, which consists of transaction fees and maximum extractable value, reached a record high on October 25.

Solana Real Economic Value | Source: Block Works Research

Additional data shows that the Solana ecosystem is evolving. According to DeFi Llama, total value locked (TVL) has increased by 23% to $6.4 billion in the last 30 days. In comparison, Ethereum and Tron’s TVL dropped by 2.1% and 11.5% respectively.

Solana also became the most dominant player in the decentralized exchange industry this month. DEX networks, specifically Raydium, managed $16 billion worth of tokens, a figure higher than Ethereum and Base combined. Its monthly volume was $41.7 billion, surpassing Ethereum’s $32 billion.

A similar trend has emerged in the derivatives market, where decentralized applications on Solana processed $4.6 billion worth of tokens in the last seven days.

Developers choose Solana due to its superior speed and low transaction costs. Data from Dune shows Solana’s network has been used by almost 200,000 users in the past two weeks; This is significantly higher than Ethereum’s 52,000 users.

Solana chart points to more gains SOL price chart | Source: TradingView

The weekly chart shows the SOL token rising for three consecutive weeks amid strong ecosystem growth.

It has retested the top of the descending trend line, which connects the highest swings since March.

Solana also formed a bullish flag pattern that often leads to further gains. It remained above the 50-week moving average, forming a round bottom or cup and handle formation.

Therefore, Solana token is likely to see an uptrend of around 20% above the current level with an initial target of $210.