Solana, one of the biggest competitors to Ethereum by market value, also ranks high in terms of transaction volume. Its speed and cost-effectiveness appeal to a significant portion of the cryptocurrency ecosystem’s investors, and the ecosystem saw considerable growth in 2021. So, what does the current situation indicate for the Solana network?
Solana (SOL)
Solana‘s network is witnessing a significant increase in active addresses. Recent airdrops have particularly fueled this growth. The JTO airdrop in December also contributed to the price and supported network activity. The growing interest in meme coins like Bonk and Wen, the rising excitement in the network’s DeFi protocols, and the latest Jupiter airdrop were all impressive catalysts for Solana.
Perhaps that’s why the price continues to struggle to surpass $100 despite BTC‘s fluctuations. On the other hand, although the total value locked in the network is weaker compared to its competitors, Solana’s market value has impressively increased.
Solana (SOL) continues to rank high in transaction volume, but it seems to be experiencing more of a hype-driven pricing. This suggests that we may continue to see abnormal price movements in the upcoming period.
Various analysts believe that three more airdrops are coming, which will sustain the excitement. For example, Miles Deutscher wrote;
“People are underestimating the magnitude of future JUP airdrops, as only 10% was allocated in the first round. The remaining three rounds will distribute the rest of the airdrop allocation (4 billion tokens).”
SOL Coin Price Prediction
The benefits of new airdrop allocations for the network are undeniable. So, what are the predictions for the price front of SOL Coin? For further increases, the price needs to reclaim the rising trend line from December. The target to overcome is at the $107 resistance. For now, SOL Coin has turned $98 into support, so the outlook is positive.
If it does what’s expected and reclaims the trend line, it could move back to the $150 region after surpassing $111, $117, and $126. In the opposite scenario, it could fall back to the ranges of $93, $88, and $80, which have been highlighted several times.
