Solana's Price Surges 90% This Month, Driven by Meme Coin Rebound and Stablecoin Growth

Solana's price has shown significant recovery this month, positioning it as one of the top-performing cryptocurrencies in the industry. The token reached a high of $180 on Saturday, marking its highest level since March. This surge represents an almost 90% increase from its lowest point this year, sparking speculation about whether SOL is poised for further gains.

One of the primary drivers behind SOL's potential surge is the recent rebound of Solana meme coins. Tokens such as Official Trump Coin, Bonk, Fartcoin, Dogwifhat, Pudgy Penguins, and Popcat have experienced substantial gains, with some increasing by double digits. This resurgence has boosted the market capitalization of all Solana meme coins to $13.1 billion, up from $6 billion a few weeks ago. This trend indicates that these tokens perform well during broader crypto market rallies, which in turn enhances Solana’s ecosystem revenue and fees. The volume handled by decentralized exchange protocols on Solana rose by 7% in the last seven days to over $21.7 billion, bringing the 30-day figure to $80 billion. Notably, Solana’s network handled more assets than Ethereum and BSC, which processed $51 billion and $35 billion, respectively.

Another key factor contributing to Solana's growth is the soaring market cap of its stablecoins. Stablecoins are essential in the cryptocurrency industry as they facilitate transactions in the absence of fiat currencies. Solana's stablecoin market cap has jumped to over $12 billion, although this figure is smaller than Ethereum’s $215 billion and Tron’s $73 billion. The total value locked (TVL) in the Solana ecosystem has also increased to almost $10 billion. These factors have contributed to Solana's robust fee earnings this year, totaling $710 million, making it the third-most profitable network in the crypto industry after Tether and Tron. It has outperformed Ethereum, which has made $616 million.

Investor interest in Solana is further evidenced by the rising inflows into staking pools. Over 7 million SOL tokens worth $1 billion have been pumped into Solana staking pools, bringing the total staking market cap to almost $70 billion. This growth has increased the staking ratio to 65%. The rising demand suggests that investors will also allocate funds to spot Solana exchange-traded funds (ETFs) when they are approved by the SEC. According to the analyst's forecast, these funds could attract over $6 billion in inflows in the first year. A key driver for this ETF inflow is the potential approval of staking in these ETFs, making them more viable than existing Ethereum funds.

Ask Aime: What's the next move for Solana?

The daily chart indicates that the SOL price has staged a strong comeback in recent weeks, rising from a low of $94 to $180. Solana has moved above the 50-day and 100-day Exponential Moving Averages (EMA) and the 38.2% Fibonacci Retracement level. The MACD and the Relative Strength Index (RSI) have also continued to rise, suggesting that the coin is likely to keep rising as bulls target the 61.8% retracement point at $220. A move above this level could indicate further gains, potentially reaching $300.