Solana recently reached a new milestone in December, as the crypto continues its trend of massive gains this year. Solana’s price has almost doubled its price at the beginning of the month, increasing appeal among users. In line with this trend, the Solana blockchain has attracted an extraordinary increase in user engagement this month.
Although there is still one week remaining in the month, the monthly activity level of Solana’s addresses has surpassed its previous greatest point this year, reaching a new milestone of over 16.45 million in December.
At the same time, on-chain data reveals the blockchain has broken past 7.23 million new addresses created this month alone. This surge of new users flocking to the network could be a sign that SOL’s price may be heading to $200 soon.
Solana’s Growing Activity And Network Usage
Solana’s popularity has grown this year than most would expect. As a result, Solana grew in market cap, displacing both XRP and BNB in the top crypto rankings in quick succession.
According to on-chain data from The Block, Solana’s active addresses have been growing since October, reaching a yearly high of 981,380 daily transactions on December 21. Meanwhile, transactions in December are now at a yearly high of 16.45 million, already surpassing January’s count of 15.24 million.
Source: HELLOMOON
Solana’s trading volume this month is now at $183.99 billion, a 111% increase from the $86.86 billion trading volume in November. The blockchain also recently surpassed Ethereum in 7-day DEX volume for the first time in history. DeFiLlama puts the total value locked on Solana’s DeFi protocols at $1.492 billion, a 580% increase from $210.47 million on January 1.
Source: HELLOMOON
How Increased Network Usage Could Impact The Solana Price
With more people interacting with the network each day, Solana’s popularity and value are skyrocketing. As the active addresses perform transactions, stake SOL, and interact with dApps on the blockchain, it boosts Solana’s utility and makes the SOL token more useful and valuable.
This growth is particularly evident in BONK, Solana’s first dog-themed meme token, whose price has grown 314% in a 30-day timeframe. Solana, on the other hand, recently reached a yearly high of $117.
Reaching $200 would be a huge milestone for SOL, as the crypto hasn’t reached this price level since November 2021. However, while the current metrics point to increased activity to reach this price point soon, the first resistance is at the $116 price level and the next around $136.
A strong break over $136 and a strong general crypto market bullish sentiment in 2024 would give Solana free rein to continue climbing higher.
SOL looking to finish 2023 on a high note | Source: SOLUSD on Tradingview.com
Featured image from The Independent, chart from Tradingview.com
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