Solana Price Is Up Today, Why It is Rising According to On-Chain Data?
The Solana price is finally getting traction in the market, where it has just created a month-high at $158.74 after surging 4.8% today. The altcoin slowly gained momentum over the last few days before finally jumping out of the week-long consolidation. In the last 24 hours, not only has the price increased, but its trading volume is also up by 66.88%, currently at $3,244,572,966, which is an indication of increased network activity.
As Solana has been among the top ten cryptocurrencies in the market, its demand is always high. It was one of the best-performing altcoins of 2023, and the price is 747% up since then. This surge comes from its long-profiting nature and other on-chain metrics, attracting more investors day every other day.
Why Is Solana Price Up Today?
Solana has been constantly in demand this year, especially among the meme coins category. In the last nine months, many popular Solana meme coins entered the market, which produced significant gains for their holders. However, the impact of that demand was not visible in the SOL price, as it laid low with a few minor peaks here and there.
Today is one of those days where the Solana price is up following the greedy sentiments of investments. A new bullish trend has entered the market, with the Bitcoin price hitting the $65K mark, and this is just the beginning of the $80K journey. Many crypto analysts have anticipated a high BTC price rally in Uptober.
This greedy nature is also visible in popular altcoins like Solana, as trading volume has surged exponentially today, boosting the token price. However, the on-chain activities have increased significantly over the past few months not just today.
On Chain Data Backs Up Solana Price Surge
The ongoing surge in the Solana price perfectly aligns with the on-chain data. An analytics platform, Artemis Termina, has disclosed the increasing net flows in the Solana blockchain, witnessing $992.6 million in inflows over the month, beating Ethereum and other networks.
The analytics platform has also revealed that September 12 had the highest net inflows, setting an all-time high record of $655.1 Million in a single day. On the same day, the number of active addresses was also high at 3.95 Million, the highest mark since the creation of the network. As a result, the Solana price and the market cap witnessed a minor surge in the charts at that time.
This increase in the active addresses and net inflow reveals new money entering the network, mainly due to the introduction of new tokens on the network, especially meme coins.
Interestingly, all these new addresses mainly surfaced during August and September, where it doubled from 26.31 Million in August to 60.55 Million in September. More importantly, at the same time, there was a major drop in the Solana fees due to the declining popularity of the Pump.fun, a memecoin launcher platform. As a result, Solana became the magnet for new users, offering super low transaction fees.
Solana Beats Ethereum In The Race
The rising active address and many other factors mentioned above have already revealed that Solana has beaten Ethereum in this race. However, this gets more clear with the VanEck research report, revealing how Solana is way ahead of Ethereum in many ways.
Though Solana is often referred to as an alternative to Ethereum, things might turn 180 as Solana has presented such a high throughput, processing thousands of transactions per second. Solana has now officially beaten Ethereum, where its transaction speed is 3000% higher than Ethereum’s TPS. Even the daily active user count has grown exponentially, 1300% higher than Ethereum.
Lastly, Solana’s popularity is powered by its super low transaction fee, which is 5000000% cheaper than Ethereum, giving a new definition of scalability. This has boosted the Solana price to the month’s new high and much more might come per on-chain data.
The report also highlighted that Solana is undervalued in the current market, but with time, it could rise to more than half of Ethereum’s market capitalization. Such beliefs and the constant growth indicate the upcoming rally for the token.
The post Solana Price Is Up Today, Why It is Rising According to On-Chain Data? appeared first on CoinGape.