Solana, a prominent blockchain network, has experienced a noteworthy surge in new monthly addresses, reflecting an 18% increase in the latest data reported by Block’s data dashboard. The blockchain, which set a multi-month high in December with a surge of 10 million new addresses, has surpassed this milestone by adding an additional 11.81 million new addresses in January.
Network Activity and SOL Token Price Speculation
This surge in network activity is often considered a potential precursor to a price change in Solana’s native token, SOL. Notably, the last time the network witnessed an all-time high in unique new addresses was in May 2022, reaching 11.72 million.
The recent uptick in new addresses aligns with heightened investor interest in native decentralized exchanges (DEXs) and memecoins like Wen and Bonk. Additionally, the launch of Jupiter, the network’s largest decentralized exchange aggregator on the final day of the month, could have significantly impacted the overall network dynamics.
Transaction Surge and Token Performance
As reported earlier, the network observed a nearly twofold increase in transactions at the beginning of the month, with transactions per second (TPS) surging from 1,900 to over 3,000. This substantial change occurred shortly after the initiation of the Jupiter airdrop.
As of the latest update, Solana’s native token, SOL, experienced a marginal drop in the past 24 hours, settling at $95. On the weekly chart, the token has gained nearly 1.5%, mirroring the broader crypto market recovery led by Bitcoin (BTC).
Bitcoin Influence and SOL Token Outlook
Bitcoin, leading the market charge, breached $43,500 and aims to retest its yearly high of $49,000, fueled by the anticipation of Bitcoin spot ETF approval. During the hype surrounding this event, SOL marked a yearly high of $105. Investors are now eyeing a retest and surpassing of this level in the short term.
In the long term, there is optimism among investors that Solana can revisit its all-time high of $259.96, achieved almost two years ago. At present prices, the token is only 62.4% below this level. Contributing to this bullish sentiment is the potential approval of a Solana spot ETF.
Institutional Favoritism and Market Outlook
Following the approval of a Bitcoin spot ETF, industry experts anticipate the approval of more crypto ETFs, with SOL positioned as a frontrunner. This is attributed to its popularity among institutional investors, making it a favorite in 2023.
The general bullish outlook in the crypto market, driven by the upcoming Bitcoin halving, is expected to play a pivotal role in the performance of top cryptocurrencies, including Solana.
Analyst Insights and Price Predictions
Raoul Pal, a prominent analyst and former Goldman Sachs executive, has been a staunch supporter of Solana. He predicts that SOL will follow a price pattern similar to Ethereum (ETH) in 2018. Drawing a parallel, ETH traded at just over $100 in May 2017, reaching $774.69 by the end of 2017 and crossing the $1000 mark within the first week of 2018.