These On-Chain Factors Position Solana For Next Surprising Eruption

Solana (SOL) has posted decent inflows amid the surge in crypto. The asset described as an institutional investor favorite is expected to see a bull takeover still on the wider market sentiment. Major reasons for this include its meme coin activity, the decentralized finance market, and Bitcoin’s price jump. In the last 24 hours, SOL’s price traded sideways at $210, with a weekly rally of 9% and monthly figures rising to 37%.

The recent price surge and on-chain factors have led to users expecting a bullish breakout. Institutional volumes have spiked as the US regulation landscape is tipped for much-needed clarity. Last year, Solana recorded consecutive inflows, becoming a favorite among altcoins. With anticipated SOL ETFs, whales are looking to increase buying pressure.

Solana’s High Network Activity

On-chain activity is a metric for measuring sentiments in an asset. These activities can be seen in decentralized finance and trading volumes, among other things. Last week, DEX volumes topped $26.1 billion, a new all-time high. This 18% increase from the previous week places the network in the driver’s seat, outpacing the leading smart contract network, Ethereum.

Data from DefiLlama shows a 460% increase in total value locked (TVL) across decentralized applications on the network. On Nov 13, TVL on Solana tapped $7.9 billion as a wide range of applications saw inflows. The wider market boom is another factor leading bulls to project higher prices for Altcoin. As Bitcoin breaks new ceilings, Solana is also expected to move in a similar direction. Traditionally, the asset is known for outpacing the market during price peaks.

SOL Meme Coins Spikes

Solana meme coins have recently become a major source of bullish sentiments. While meme coins record uphill activity, Solana meme coins soared 20% in the last 24 hours. This sharp upward trajectory took the market cap above $21 billion. Today’s largest gainers include LEPER, which surged 3763%, while Jam Cat and Maya posted 1446% and 401% gains, respectively.

Popular assets like BONK, PNUT, and MEW, among others, ignite the community towards the bulls divide. Whales have also delved into the meme coin buzz, adding to the stir.

“A whale withdrew 14,770 $SOL($3.03M) from #Binance to buy $Pnut and $ACT just now, causing the prices of $Pnut and $ACT to surge! The whale spent 12,000 $SOL($2.46M) to buy 9.24M $Pnut at $0.266 and spent 2,000 $SOL($410K) to buy 2.04M $ACT at $0.2,” Lookonchain wrote on X.