Solana ($SOL) has experienced a 22.70% price jump in the past seven days, crossing $70 on December 8, 2023. As of December 9, the cryptocurrency is valued at $76.33 per coin.
Solana Regains Momentum
The price of SOL traded in the $38.77-$42.25 range for most of November before the crypto market entered the Bull Run, and the price surged. Soon after, the price jumped by nearly 50% before its momentum stopped at $62.81.
It traded sideways for a week before picking momentum again, but the rally collapsed at $65.90. SOL has regained momentum in the past week, with its price jumping 15%, leading to a new 12-month high of $72.78. The coin has retained that momentum since December 8, currently at $76.33.
Solana DeFi Ecosystem Growth
Solana’s DeFi ecosystem has experienced massive growth in recent weeks. DEXs on Solana have been experiencing new all-time high volumes. DeFi activity on Solana has been so high that it surpassed the $1 billion mark.
DefiLama shows Solana’s DeFi volume in the past 24 hours is $1.121 billion, just shy of Ethereum’s DeFi volume of $1.253 billion. That figure is even more impressive considering that the TVL on Solana is just $943.54 million, while Ethereum’s is over $30 billion.
The rise in DeFi activity on Solana can be partly attributed to the network’s low transaction fees. Additionally, it offers faster transaction speeds than Ethereum. In comparison, Ethereum still deals with slow transactions and high costs during high network activity.
How High Can Solana Go?
With $SOL blowing the critical resistance level of $70, many analysts are not predicting a 30% rally in the coming weeks. They have set a $90 minimum price target. However, the potential for profit-taking could pull the price back to $47 if the critical support level of $60 weakens.
In a tweet posted on December 9, Arthur Hayes, founder of BitMex exchange, suggested that SOL could soon hit $100. Earlier in the week, Hayes had speculated that the crypto market was headed for a bullish weekend.
Could SOL Get Back to Its ATH?
In the past twelve months, the price of $SOL has climbed over 450%. However, it is still trading at a 70% discount on the all-time-high of $260.06, which it achieved in November 2021.
Solana has had a remarkable run in 2023. Some analysts have speculated that it could once again reach its ATH price. However, some things will need to happen before that. For once, $SOL will need to win back investor confidence.
Solana’s rise was helped, in a big way, by the failed FTX exchange. Consequently, there is still unease about the project. Additionally, the SEC had suggested in June 2023 that $SOL might be an unregistered security. These events have led to some institutional investors developing FUD regarding $SOL.
Despite these challenges, Solana has successfully won over institutional capital. Interestingly, SOL was beating Ethereum as the altcoin of choice for institutional investors at some point, according to data from CoinShares.
Should You Buy SOL?
Solana’s future seems excellent right now. However, as with any crypto investment, it is a list of probabilities. For instance, SOL could grow its value 3.5 times in the coming weeks to surpass its $260 ATH. It could collapse, with the value falling to a low of $10. However, based on the current performance, the prediction of a potential 30% upside in the coming weeks is accurate.
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