SOL price has started moving upwards after hitting a low point on January 23rd at around $79. It then rallied to $104, but it is currently experiencing some declines.
The Solana blockchain has seen growing activity recently. Both the price and usage metrics of Solana’s native cryptocurrency, SOL, indicate positive momentum for the network.
After a short period of decline that began around mid-December, Solana is starting to gain strength. The price has started moving upwards since reaching a bottom on January 23rd at around $79. It then rallied to $104 before correcting back to $100.
However, data show that the overall trend is still positive. According to CoinMarketCap, the price is still up by 15% over the past 7 days. In addition, the Relative Strength Index (RSI), which measures the strength and momentum of a price trend shows the bulls are still in control as the value is presently around 55. This indicates that there is still room for the price to grow. Overall, Solana’s price has increased by more than 310% over the past year.
This boost in price reflects renewed optimism among investors regarding Solana’s future potential and real-world usefulness. The underlying technology is also a significant factor in the growth, as it offers faster transaction speed and lower fees compared to alternatives like Ethereum. As more users start using Solana’s decentralized apps and DeFi protocols, the demand for the SOL token may continue to rise.
Network Usage Spikes
On-chain data shows that Solana’s network activity has spiked in tandem with the SOL price gains. Key usage metrics, like active user counts and transaction volumes, are up. This suggests genuine organic adoption is driving new wallet creation and token transfers on the blockchain. SOL trading volume is also up, which shows that there is more interest in the coin.
Upcoming Jupiter Token Launch
Another contributor to the excitement surrounding Solana is the upcoming distribution of the Jupiter token (JUP) to qualified wallets in the Solana ecosystem.
$JUP Launch Registration is LIVE!🪐
Catdets, it's time to whitelist your wallet before the JUP launch!
— Jupiter 🪐 (@capalino) January 31, 2024
The launch of JUP mirrors that of the WEN token given out to Solana users last year. However, the WEN distribution saw issues with unclaimed tokens. The Jupiter token launch will likely learn lessons from the WEN experience.
Whales Making Big SOL Transactions
Large individual holders, known as crypto whales, have also transacted enormous sums of SOL recently. WhaleAlert tracked two separate whale transactions amounting to nearly $85 million worth of SOL changing hands.
The first was an exchange transfer of 150,000 SOL worth over $15 million to an unknown wallet. Soon after, another wallet exchanged 659,283 SOL, totaling $67 million. Transactions of this mind-blowing size invariably generate speculation within crypto communities.
— Whale Alert (@whale_alert) January 31, 2024
Investors monitor whale movements closely for signals of confidence, intent, or potential manipulation. While the reasons behind these specific SOL transfers remain unclear without further context, they underscore the growing trading activity around Solana. The blockchain’s expanding real-world utility continues to attract big investors.
With the robust price performance, soaring on-chain activity, the upcoming JUP airdrop, and the attention of mega-investors, Solana demonstrates no signs of slowing down. As developers build increasingly innovative and useful decentralized apps on the blockchain, adoption should continue rapidly expanding. Investor and trader interest will likely follow suit, further boosting metrics like SOL price and network usage.