TL;DR
Solana saw strong gains recently, with some analysts forecasting further growth.
Rising on-chain volume and TVL suggest solid user engagement, potentially supporting future growth momentum.
Is the Projected Rally Plausible?
Solana (SOL) has been the best-performing cryptocurrency (from the top 20 list) in the past week, with its price surging by 11%. On October 24, it briefly spiked to $178 (per CoinGecko’s data), the highest level in nearly three months. Currently, SOL trades at around $171, while its market cap is well above $80 billion.
To put things into perspective, the market caps of well-known entities such as British American Tobacco, Spotify, Marriott International, Mitsubishi Corporation, and others are worth less than Solana’s.
According to some X users, SOL has yet to stun industry participants with impressive gains. Titan of Crypto is among the bulls, noting the emergence of a “massive bull flag” on the asset’s weekly price chart. The analyst expects the staggering 700% increase to over $1,400 sometime next year.
This technical analysis pattern generally indicates that buyers are temporarily pausing after a price rally. However, it also suggests they may soon resume purchasing, pushing the valuation higher.
It is important to mention that such a price explosion would require SOL’s market capitalization to skyrocket to almost $600 billion. Currently, the only cryptocurrency with a higher cap than that is the market leader, Bitcoin (BTC), making the forecast quite challenging (to say the least). Ethereum (ETH) comes next with a little more than $300 billion.
Titan of Crypto’s forecast triggered a wave of comments, with some X users describing the target as plausible. Others, though, claimed those are “insane numbers.”
That are insane numbers, Think 400-500 most likely and everything above is a gift
— Fusel (@Fuselwhale) October 24, 2024
Closer Look on Solana’s Ecosystem
SOL’s latest price appreciation aligns with the rising on-chain trading volume on the network. DefiLlama data shows that the figure has been hovering above $2 billion for the past six days.
In addition, the total value locked (TVL) on Solana skyrocketed to a 34-month high of more than $6.7 billion on October 24.
The resurgence could be considered a generally positive factor for SOL’s price, suggesting higher user engagement. A rising TVL indicates an increase in the amount of capital or assets held within Solana’s decentralized finance (DeFi) ecosystem. This might be viewed as a sign of confidence by market participants, fueling additional interest from investors.
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