Solana (SOL) has burst into the cryptocurrency market with impressive performance, surpassing major Ethereum layer 2 solutions such as Polygon (MATIC) and Optimism (OP) in terms of daily trading volume.
This feat marks a significant milestone in Solana’s trajectory within the blockchain space.
With strong numbers, Solana has recorded an impressive daily trading volume of $331 million, eclipsing Polygon’s $129.42 million and Optimism’s $48 million during the same period according to DefiLlama data.
Furthermore, its dominance extends to value locked in decentralized applications (dApps), with a staggering total of $694 million, surpassing rival Avalanche (AVAX).
This unprecedented growth is attributed to several key factors at Solana
Interest in Solana-based offerings, such as Ordinals’ SolScriptions, along with the increase in token creation on the network, has triggered a notable increase in activity.
Additionally, active participation in liquid staking protocols such as Jito and Marinade Finance has attracted new users and improved liquidity on the network.
Decentralized exchanges, such as Raydium and Orca, have seen a significant increase in popularity and usage, significantly contributing to the thriving Solana ecosystem.
Despite this growth, Solana still lags behind Arbitrum, a major Ethereum layer 2 solution, which boasts a locked value of nearly $2.2 billion and a daily trading volume exceeding $363 million.
This highlights Solana’s ecosystem expansion and investor confidence, but also raises questions about its ability to close the gap with leading Ethereum-based solutions.
Analysts such as Altcoin Sherpa have expressed optimism about SOL’s potential, predicting a possible correction in its value with a strategic entry point below $50.
Predictions point to the possibility of SOL reaching triple digits in 2024, with a specific target of $104.49 based on data analysis.
Currently, Solana (SOL) is currently worth $61.10, experiencing a decline of 3.42% in the last day.
With a market capitalization of 3.40%, it is positioned at #6 in the general ranking. Importantly, SOL has shown an impressive 46% increase in the last month, showing significant performance in a short period of time, according to official data from CoinMaketCap.
