SOL Price Reaches 2-Year High: Could an All-Time High Be Next?

• Solana which currently trades at $217 has surged to a two-year high, driven by a 35% increase in price and a rise in network activity.
• Another strong indicator is Solana’s fee monthly fee revenue, which reached $88.2 million in early November.

One week has elapsed since the U.S election where against all odds Donald Trump surged ahead, and most cryptocurrencies have entered a bullish phase. Focusing on Solana, this digital asset is tearing up the charts with its dramatic surge . Solana’s SOL reached a two-year high of $222 on November 11 after an uptick of 35% in just six days. 

This uptick has ignited heightened speculations among market gurus on whether Solana could achieve a new all-time high surpassing its 2021 peak of $260.

Solana’s recent increase in market value has been a contribution of several factors. For one, Solana has undergone growth in its smart contract activity. Additionally, SOL has undergone a surge in its total value locked. As of November 10, Solana’s TVL had climbed to $7.6 billion, its highest since December 2021.

This surge in TVL highlights rising user deposits and is largely driven by the adoption of DApps such as Jito, Raydium, Drift, and Binance’s liquid staking. These DApps alone contributed a substantial 36% increase in network deposits, reinforcing the demand for Solana’s services.

Additionally, activity on Solana’s DEX trading volumes on Solana reached 417.1 billion by early November. This led to the token capturing a 26% share of the market and outpacing even Ethereum in DApp-driven transactions. 

On the other hand, there are heavy speculations that Solana might also be getting a boost from memecoins like Dogwifhat, Bonk, and Popcat, all boasting over $1.5 billion in market capitalization.

Another positive indicator of Solana’s positive momentum is its fee monthly fee revenue, which in early November reached $88.2 million. It is worth mentioning that Solana has been a great threat to the second-largest cryptocurrency by market cap Ethereum. Additionally, Solana’s fees, though still behind Ethereum’s $131.6 million, are ahead of Tron’s $49.1 million, positioning Solana as a competitive force.

It is worth mentioning that ETH is changing wallets with $3,366.05 marking a 5.75% surge in the past 24 hours. 

Also, the network’s NFT marketplace, Magic Eden, provides further proof of Solana’s broadening appeal. Notably, Magic Eden attracted 77,160 active users in the past 30 days, more than double that of Ethereum’s OpenSea, which had 37,940 active users.

While SOL’s price trend remains bullish, on-chain and derivatives data indicate a cautious approach from traders. The recent normalization of SOL perpetual futures funding rates to a monthly average of 1.8% suggests moderate leverage.

At the time of writing, Solana’s SOL holding 4th position is changing wallets with $217.61 marking a 3.23% and 34.73% surge in the past 24 hours and week respectively. On a broader scale, the asset’s current market price represents a 47.33% and 268% surge in the past month and year respectively.