Solana By The Numbers, Q4 Records Shows Future SOL Potential

The broader cryptocurrency market has paid massive attention to Solana (SOL) as its price pattern continues to fluctuate.

Amid this price volatility, Messari, a leading crypto market intelligence platform, has X-rayed its 2024 fourth-quarter performance.

Solana’s Explosive Growth in Key Metrics

Messari’s analysis highlights Solana’s remarkable Q4 performance, arguing that it might be one of the strongest quarters in its history.

This conclusion was based on Solana’s figures in key metrics. According to the total economic activity on Solana, or the “chain GDP,” the network recorded a 213% increase to $840 million.

This chain GDP, which likely includes total transaction fees and protocol revenues, is indicative of massive growth. It also suggests increased network usage and adoption.

Solana’s Total Value Locked (TVL) in Q4 hit $8.6 billion. TVL measures the amount of assets locked in Solana’s decentralized finance (DeFi) protocols.

– Advertisement –

A high TVL suggests that more capital is being utilized within the ecosystem. Hence, the fact that it hit $8.6 billion within the last three months of 2024 shows that investors had strong confidence in the asset.

Another key metric in which SOL registered growth is decentralized exchange volume, which grew by a massive 150% to $3.3 billion daily.

This development indicates growing user engagement and liquidity in Solana’s DeFI sector.

Furthermore, the total supply of stablecoins like USDT and USDC on the Solana network rose to $5.1 billion, representing an increase of 36%.

Analysts say the rise indicates that more users transacted on the network and used it for DeFi or payments.

Memecoins and DePIN Boost Ecosystem Expansion

Meanwhile, the Solana ecosystem has made some pivots, identifying with memecoins and Decentralized Physical Infrastructure Networks (DePIN).

These developments signal diversification into real-world applications.

Solana has become a popular platform with memecoins, primarily due to its fast transaction, reduced fees, and permissionless token creation.

Memecoin launched, such as Pump.fun recorded explosive growth that stunned the crypto community.

Additionally, Solana memecoins like BONK have heightened the ecosystem’s appeal with massive gains leading to soaring on-chain activity.

Experts say this move by Solana places it at an advantage as it shifts from a speculative blockchain to another use case.

Analysts Predict Bullish Momentum for SOL

Messari, in its analysis, argued that Solana’s massive growth across multiple sectors, from DeFi to stablecoins, reveals its future potential.

Other analysts have studied Solana’s historical pattern and price movements, which support Messari’s viewpoint.

As The Coin Republic reported, Trader Tardigrade, a renowned market analyst, said that SOL usually hits significant price growths after experiencing long spells of volatility.

The technical analysis of Solana currently shows that it could trigger a price surge. According to Trader Tardigrade, if SOL successfully pushes above $230 and sustains momentum, the coin could soar to $420.

Other analysts revealed a more cautious optimism for SOL. These analysts project’ prices could hit $300 if supported by investors.

Notably, the trading volume needs to stay sustainably high for Solana to witness a significant climb.

As of this writing, the SOL price changed hands at $197.21, a 7.49% increase in the last 24 hours. In contrast, trading volume has dropped by 31.31% to $5.14 billion.

Market observers maintain that these metrics reveal that Solana has not found stable market momentum.