In recent weeks, the cryptocurrency Solana (SOL) has shown impressive growth, attracting attention from investors and analysts. According to data from Cointelegraph Markets Pro and TradingView, the price of SOL rose from $156 on November 5 to $225 on November 12, marking a 43% increase. This rise coincided with Bitcoin (BTC) hitting a new all-time high of $93,434.
One of the key reasons for the rise in SOL's price is the increased activity on the Solana blockchain. According to data from DefiLlama, decentralized exchange (DEX) volumes on Solana reached a record $26.1 billion for the week ending November 11, which is 43% more than the previous week. This allowed Solana to capture 37% of the market, surpassing Ethereum, whose DEX volume for the same period was $13 billion.
Furthermore, the total value locked (TVL) in Solana smart contracts rose to $7.9 billion by November 13, a 460% increase since the beginning of the year and the highest figure since December 2021. The main contributors to this growth were decentralized applications like Jito, Raydium, Marinade, and Binance Liquid Staking.
Another factor contributing to the price rise of SOL is the increase in open interest (OI) for Solana futures. According to data from CoinGlass, open interest for SOL futures reached a record $4.54 billion on November 12, which is 57% more than the previous week. This indicates growing institutional interest in SOL derivatives, which could lead to further price growth.
The rise in SOL's price also coincided with the increased popularity of Solana-based meme coins. Tokens like Dogwifhat (WIF), Bonk (BONK), Peanut the Squirrel (PNUT), and Popcat (POPCAT) have shown significant growth in recent days. For example, Dogwifhat rose by 42% in 24 hours, while Bonk, PNUT, and POPCAT grew by 20%, 42%, and 32%, respectively. This reflects increased interest in the Solana ecosystem and its potential for creating new tokens and applications.
In combination, these factors suggest that Solana has the potential to reach new all-time highs in the near future. Increased activity on the blockchain, growth in open interest for futures, and the popularity of Solana-based meme coins create favorable conditions for further growth in SOL's price.
