Solana has seen its total value surge to its highest level since January amid growing meme coin hype.
For Solana SOL $118.3 24h volatility: 4.1% Market cap: $66.38 B Vol. 24h: $6.47 B , October may finally live up to its reputation as the traditionally bullish month. The Total Value Locked (TVL) on Solana exceeded $6.1 billion, marking a new high in October. This outlook suggests increased user trust and engagement with the platform. It is worth noting that this is the highest level of total value of assets deposited by users that Solana has recorded since January 2022.
Positive Trends for Potential SOL Price Gain
In addition, DeFiLlama data also showed that more than 40 million SOL were locked in its Decentralized Finance (DeFi) applications as of October 15.
The current value is notable growth compared to the beginning of this year when it floated around 14 million SOL. This increasing number of SOL locked indicates growing demand for the coin.
Therefore, this suggests that the rise in TVL is partially due to the increase in SOL price. SOL is trading at $155.04 after gaining up to 2.08% in the last 24 hours.
TVL on $SOL has broken through the $6bn mark, a high not seen since January 2022 ⚡️
How high do you think Solana can go this cycle? 🔽🔽 pic.twitter.com/HlYgulg0NS
— CryptoSavingExpert ® (@CryptoSavingExp) October 15, 2024
CoinGecko states:
“DEX trading activity continued to flourish on Solana, buoyed by the multitude of meme coins. It ended September with a 22% market share and $21.5 billion in volume.”
The data platform also added that the market capitalization of Solana-based meme coins has exceeded $11.2 billion. Their daily trading volume is currently close to $4 billion.
One of the top contributors to Solana’s TVL growth is Raydium, a Decentralized Exchange (DEX) on the platform. For almost every $1 billion increase in TVL that Solana saw this October, Raydium accounted for approximately 60% of it. The ongoing hype for meme coin has contributed to the increasing trading demand on Raydium. Fortunately for the DEX, there is no sign that this trend will end soon.
Even Kaito recently revealed that meme coins had hit a new peak in mindshare.
Daily New Addresses on Solana Reach 4 Million
According to data from IntoTheBlock, Solana’s daily active addresses (DAA) are also soaring.
On certain days in October, the network registered more than 4 million active addresses. This metric consistently showed great prospects in September when it maintained above 3 million per day. Also, over 4 million new addresses are created on the Solana network daily.
This explicitly underscores the growing demand from new users and fresh capital inflows into the project. Although SOL has yet to break out to a new All-Time High (ATH) recently, these trends are signals of a potential price rally for the altcoin.
If the market can sustain buying, the price of SOL could surge further by 25% to hit $180. This sentiment would challenge the triangle resistance for the pennant pattern.
From a technical standpoint, analysts discovered that SOL faces significant resistance at $159. If it can break past this level, it could reach $200 in the long term.
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