Over the past 7 months, the Solana price has traded sideways, struggling to sustain above the $200 level. However, as the crypto market witnessed a renewed recovery in late October, the SOL coin price is poised to escape this long-coming consolidation. Here, we delve into five key metrics that suggest Solana could soon reach new heights, reinforcing its place among the top blockchain networks.
5 Key Metrics Suggest Solana Price Could Hit New All-Time Highs
The crypto market witnessed renewed bullish momentum in late October as pioneer digital asset Bitcoin surged past $70,000. As the altcoin market mimics the recovery trend, Solana price prediction caught investors’ attention as these five metrics signal its potential for new ATH.
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Development Activity
According to Santiment data, the Solana development activity recorded a sudden spike to 140 on October 29th. Typically, active development suggests that the ecosystem is maturing with continuous innovation, which is crucial for maintaining its high position in the emerging crypto market. A high development activity often drives confidence among investors, which could be a positive for its native cryptocurrency.
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Social Dominance
Since last week, the SOL’s social dominance has witnessed an upward trajectory, hitting a high of 9.17 on Tuesday. This metric highlights how much attention a cryptocurrency gathers on social media platforms like X (formally known as Twitter), Reddit, and other forums. Increased social engagement typically translates to higher interest from both retail and institutional investors, reflecting the demand pressure in the market.
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New Addresses and User Growth
The on-chain data shows a dramatic surge in SOL’s new addresses, rising from 2.99 Million to 5.32 Million in October. The influence of new users not only accelerates network growth but also drives demand in Solana price as new participants engage in transactions and greater activity on the blockchain.
The growth in new addresses is considered among the core developments of the network as its indicates increased adoption.
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Total Value Locked (TVL) in DeFi
According to DeFiLlama data, the SOL Total Value Locked (TVL) rallied remarkably from $3.8 Billion to $6.25 Billion, registering a 63% growth. Typically, this increase indicates growing investors’ confidence as they lock more capital into the network’s Decentralized finance (DeFi) application.
This metric accentuates highlighted user activity and a robust network that is suitable for a major SOL price reversal.
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Open Interest in Solana Futures
In October, the SOL’s future open interest experienced a significant surge from $2.14 Million to $3.41 Million, accounting for a 46% increase. This substantial rise in open interest implies that investors are actively speculating on Solana’s future price direction, reflecting heightened engagement and confidence in its market potential.
Generally, the Solana price recovery backed by OI data growth indicates a sustained recovery, which bolsters the asset for new ATH.
Conclusion
Solana price outlook remains bullish, driven by strong network activity, rising Total Value Locked (TVL) in DeFi, an active developer community, increasing institutional interest, and positive market sentiment. These metrics collectively suggest that SOL could be on track for new all-time highs.
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