Solana amid network usage: bull rally ahead? 
2024-10-23

Solana (SOL) has witnessed a notable surge in user activity over the past month. The chain’s daily active address and transaction count have skyrocketed by double digits in the past 30 days. 

This uptick in network demand may directly fuel SOL’s rally above the $200 price mark for the first time since April.

Over the past 30 days, demand for the Solana network has surged, as evidenced by an increase in daily active addresses. According to data from Artemis, 7 million unique addresses have completed at least one transaction on Solana during this period, marking a remarkable 70% increase.

This rise in active addresses has naturally led to a corresponding uptick in daily transaction volume on the network. Over the same 30-day period, Solana has processed 44 million transactions, representing a 24% increase in daily transaction count on the L1. 

As more users engage with a blockchain network, the utility of its native asset (SOL in this case) increases. High usage indicates that more transactions are occurring, often requiring more of the network’s token to pay transaction fees. This boosts demand for the asset, driving up its price.

If Solana continues to experience increased network activity, driving demand for SOL, its price—currently at $166.15—could break past the resistance level of $172.53. 

A successful breach of this resistance would set the altcoin on course to reach $194.12. Should buying momentum continue to increase, Solana’s price could reclaim $210.18, a level it last touched in March.

However, if user activity on Solana declines and demand for SOL weakens, the price may test support at $148.15. Failure to hold this level could push the coin down further to $133.76, invalidating the bullish outlook.