- Solana’s fees and transactions were higher than other top L1s.
- The price of SOL may rise to $120, but may fall before then.
Among all top layer 1 (L1) blockchains, only Solana (SOL) recorded increases in all metrics. AMBCrypto confirmed this after proper investigation of the post by The Block Research.
According to the data provided, other L1s such as Ethereum (ETH) and Tron (TRX) have seen a significant increase in stablecoin supply.
Solana was no exception, suggesting a surge in interest in the cryptocurrency market.
In addition to interest, the growing supply of stablecoins across various blockchains means that market participants have enough purchasing power to fuel widespread price increases.
However, Solana surpassed Ethereum and Tron in terms of daily transactions, fees, and demand for each token.
3/ The decline in inscription activity resulted in a decline in daily transactions, user numbers, and fees for most chains except Solana, which maintained consistent demand across all key metrics. pic.twitter.com/ZkkIbqQyYd
— The Block Pro (@TheBlockPro__) February 14, 2024
Solana’s prosperous season is not over
This outperformance of L1 was a sign that the market was interested in SOL and tokens in the ecosystem. The reason may be linked to price-performance ratio.
At press time, SOL was changing hands at $115.91. This is an increase of 98.47% in 30 days. During the same period, the price of ETH rose 42.67%. On the other hand, TRX rose 27.35%.
AMBCrypto provided further evidence of Solana’s dominance on February 14th. In that article, we reported how the proof-of-history blockchain surpassed the Binance Coin (BNB) market capitalization.
When it comes to social scale, on-chain data confirms that Ethereum and Tron cannot match Solana.
Source: Santiment
At press time, ETH’s social volume was 25. TRX had lower volume and SOL outperformed both at 30. Social Volume tracks text documents or searches linked to your project.
Therefore, we can conclude that Solana was one of the most popular projects while Ethereum lagged behind.
A downtrend begins before a rally begins.
Social metrics can have a snowball effect on cryptocurrency valuation. For SOL, increased social volume could push the price up to $120 in the short term.
However, if the indicator gets too high, it could hit a local high and cause price action to fall.
On the daily SOL/USD time frame, the 9 EMA (blue) and 20 EMA (yellow) are close to each other. A move like this suggests that the near-term bullish outlook may be coming to an end.
If the price of SOL falls below the 9 or 20 EMA, previously confirmed bullish arguments may become invalid.
If the EMA crossover remains strong, SOL could head towards $140. On the other hand, the relative strength index (RSI) was 68.35, suggesting solid buying momentum.
Realistic or not, the market cap of SOL in ETH terms is:
If the RSI reading reaches the 70-75 area, SOL will become overbought and may revert.
Source: TradingView
Overbought means the price could fall below $100 if possible. However, in a very optimistic case, Solana’s validation could lead to a retest of $150 for the first time in over two years.