TL;DR
- Solana (SOL) Outstanding Short-Term Performance: SOL has shown impressive performance recently, generating strong buying interest.
- Capitalization Growth: Solana’s market capitalization has increased by 11.5%, reaching $41.7 billion with an inflow of $4.4 billion since January 22, according to CoinMarketCap.
- Boom in Activity and Meme Tokens: Buying pressure on Solana is linked to an increase in network activity, especially with meme tokens like WEN, backed by the success of the second model of the phone and an increase in network addresses.
Decentralized finance (DeFi) platform Solana (SOL) has emerged as one of the best-performing cryptocurrencies in the short term, attracting a significant increase in buying pressure in recent weeks.
The growing interest has raised Solana’s market capitalization to $41.7 billion at the time of writing according to official data from CoinMarketCap, reflecting an inflow of $4.4 billion or 11.5% growth from $38.1 billion recorded on January 22.
These recent advances by Solana have coincided with a short-term rally in the market led by Bitcoin (BTC).
Importantly, most cryptocurrencies benefited from Bitcoin’s gains, amid a decline in profit-taking from the Grayscale Bitcoin Trust Fund (GBTC).
Buying pressure on Solana has emerged at a time when the network is experiencing a surge in activity, with the platform’s meme coins being a crucial factor in this growth.
The latest popular meme token, WEN, is currently distributing to over a million users, including those on Solana’s Jupiter exchange, owners of the Solana Saga phone, and holders of specific Solana-based non-fungible token (NFT) projects.
Following the success of the first Solana smartphone, the platform recently announced the launch of the second model, which is already experiencing growing demand.
After the announcement of the second version of the phone, pre-orders for the device reached almost 30,000 within an hour.
The Solana team is confident in the success of the first cryptocurrency-ready device, which features integrated crypto and web3 functionalities, including a dedicated crypto wallet, support for decentralized applications (dApps), and exclusive NFT marketplaces for users.
Amid this growing activity, the number of Solana addresses is also seeing an increase.
As of January 2024, the network has registered at least 10 million new addresses, mostly attributed to meme coin activity on the platform.
Solana (SOL) Price Analysis and Possibility of Reaching $100
At the time of writing, SOL was trading at $96.2 marking a weekly gain of over 10%.
It is worth noting that SOL reached a weekly high of $99 before experiencing a brief correction.
Looking at the current price movement, Solana appears to have retraced its previous year’s rally, characterized by consistent upward momentum and long green candles in daily trading.
Cryptocurrency analyst Jelle, in a post on X (formerly Twitter) on January 26, suggested that investors should anticipate an extended SOL rally, projecting that the token could soon reach $200.
He cited the token’s strength against Bitcoin as a factor to consider for sustained gains.
Based on fundamentals, SOL appears poised to reclaim the $100 mark, and the token will also look for overall momentum from the crypto market trajectory.
It is important to remember that the cryptocurrency market is highly volatile, and predictions should be approached with caution.
