Solana, a popular cryptocurrency, has reached an impressive milestone in December, continuing its trend of significant gains throughout the year. The cryptocurrency has nearly doubled in price since the beginning of the month, attracting more users and increasing its appeal. As a result, the Solana blockchain has experienced an extraordinary surge in user engagement this month.
Despite having one more week left in December, Solana has already surpassed its previous highest level of user activity this year, with over 16.45 million addresses being active on the blockchain. Additionally, on-chain data reveals that the blockchain has witnessed the creation of more than 7.23 million new addresses in December alone. This influx of new users could be an indication that the price of SOL, Solana’s native token, might soon reach $200.
Solana’s popularity has exceeded expectations this year. As a result, the cryptocurrency has climbed up the market cap rankings, displacing notable contenders such as XRP and BNB. On-chain data from The Block indicates that Solana’s active addresses have been steadily increasing since October, reaching a yearly high of 981,380 daily transactions on December 21. Moreover, transactions in December have already surpassed January’s count, totaling 16.45 million.
Solana has experienced a remarkable surge in trading volume this month, reaching $183.99 billion, a substantial 111% increase from November’s trading volume of $86.86 billion. Additionally, the blockchain has achieved a significant milestone by surpassing Ethereum in 7-day DEX volume for the first time in history. This surge in trading volume is complemented by a rapid growth in the total value locked on Solana’s DeFi protocols, which currently stands at $1.492 billion, a 580% increase from the beginning of the year.
With more people interacting with the Solana network on a daily basis, the popularity and value of Solana are skyrocketing. As active addresses transact, stake SOL tokens, and engage with decentralized applications (dApps) on the blockchain, the overall utility of Solana increases, making the SOL token more valuable. This growth is particularly evident in BONK, Solana’s first dog-themed meme token, which has experienced a staggering 314% price increase in just 30 days. Solana itself has reached a yearly high of $117, highlighting the tremendous potential for growth.
Reaching the $200 price level would be a significant milestone for SOL, considering that the cryptocurrency hasn’t reached this price since November 2021. While current metrics indicate an increased level of activity that could drive the price to $200 soon, there are several resistance levels to overcome. The first resistance is expected at the $116 price level, with the next significant hurdle at $136. A decisive break above $136, coupled with a bullish sentiment in the general cryptocurrency market in 2024, could potentially propel Solana to new heights.
Solana’s recent achievements in December, such as doubling its price and attracting a surge of new users, demonstrate its growing popularity and influence in the cryptocurrency space. The blockchain’s user engagement has reached unprecedented levels, with millions of active addresses and transactions. Furthermore, Solana’s trading volume has soared, surpassing Ethereum’s volume in decentralized exchanges. As more people interact with the Solana network, the utility and value of the SOL token continue to rise. Reaching the $200 price level would mark a significant milestone for SOL, emphasizing its potential for further growth in the future. However, investors should conduct thorough research and consider the risks associated with investing in cryptocurrencies before making any investment decisions.
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